Elizabeth Warren Trains Her Sights on a New Target
The Education Department is chasing borrowers to repay student loans they may not owe.
Elizabeth Warren.
Photographer: Andrew Harrer/BloombergThis article is for subscribers only.
The U.S. Department of Education’s debt collectors may be violating the law by collecting on defaulted federal student loan debt that’s likely invalid yet owed by "vast numbers" of defrauded for-profit college students, Senator Elizabeth Warren (D-Mass.) charged Thursday.
The issue concerns nearly 80,000 Americans in default on loans they collectively took out to attend more than 100 schools from 2010 to 2014 owned by defunct for-profit giant Corinthian Colleges Inc. The schools—which went by the Everest, Heald, and WyoTech brand names and were spread across more than 20 states—allegedly duped students into enrolling in dozens of programs by marketing false job-placement statistics, the Education Department has concluded.