Following the bankruptcy and, therefore, closure of Corinthian Colleges, one of the U.S.’s largest for-profit educational institutions, 78,000 students are now without their higher education and the government is facing a possible bill for $200 million to cover the student loans in place. As it was the government’s decision to enforce bankruptcy proceedings against Corinthian, the students have now petitioned the Secretary of Education, Arne Duncan, for the settlement of their loans.
If granted, and legal experts believe that will be the case, it sets a serious precedent for the future. The continued pressure by the Obama Administration on for-profit institutions will undoubtedly lead to more closures, and that, in turn, will lead to more petitions from hundreds of thousands of students, whose debts amount to tens of billions of dollars.
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