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A Reading From Kamala Harris to the Corinthians

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Vice President Kamala Harris delivers remarks on Corinthian Colleges pupil mortgage forgiveness, on the Department of Education on June 2.


Kevin Dietsch/Getty Images

First nationalize pupil loans claiming it will get monetary savings for taxpayers. Next let college students pile up debt at for-profit faculties. Then prosecute these faculties for fraud and put them out of enterprise. Then forgive all of the debt and stick taxpayers with the invoice.

That’s primarily the political parable of Corinthian Colleges, as informed by

Kamala Harris.

The Vice President ambushed Corinthian whereas she was California Attorney General. She started investigating the for-profit in 2013 for allegedly misrepresenting job-placement charges, however she struggled to help her claims. The Education Department rode to her rescue by making exhaustive doc calls for.

Obama Administration officers then complained the school wasn’t producing paperwork quick sufficient, and the Education Department lower off federal pupil support. This drove Corinthian out of business and stranded tens of 1000’s of Corinthian college students.

The Obama Administration then agreed to forgive $171 million in authorities loans for Corinthian college students nonetheless at school. In 2016 a state decide handed Attorney General Harris a default judgment in opposition to Corinthian, which she flogged throughout her marketing campaign for U.S. Senate. What a intelligent authorized technique: Bankrupt an organization so it could actually’t defend itself.

But progressives, by no means happy, have demanded that the feds cancel the debt of each borrower who attended Corinthian since its founding in 1995. The Trump Administration refused this as a horrendous precedent that may let college students off the hook for repaying loans if their faculty is accused of fraud.

The Biden Administration has no such qualms. On Wednesday the Education Department introduced it could forgive $5.8 billion in debt for 560,000 former Corinthian college students. “The action is the largest single loan discharge the Department has made in history,” the Department boasted, crediting Ms. Harris, who took a victory lap on Thursday at a press convention.

This is an invite for Democratic AGs to make baseless costs in opposition to faculties. They solely goal for-profits, although nonprofit and public faculties aren’t any saints. Meantime, the Education Department is engaged on a rule to supply debt reduction to for-profit debtors who declare to have been defrauded. The actual fraud was the Democrats’ student-loan takeover in 2010, which they claimed would get monetary savings and can now value taxpayers many billions if not trillions of {dollars}.

Journal Editorial Report: It insults the hundreds of thousands who paid their loans again. Images: Getty Images for We The 45 Million Composite: Mark Kelly

Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

Appeared within the June 3, 2022, print version as ‘A Reading From Kamala to the Corinthians.’

Source: www.wsj.com

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