4 ms·

I'm guessing the kids who actually paid their student loan debts didn't get any of their money back.

elliekelly 8y ago
And this settlement only covers loans that students took out with the school directly. Any students with federal loans are still on the hook for every penny. Edit: Source for anyone interested[1]. Federal law provides individuals with federal student loans to discharge their loans under the "borrower defense" if the students were defrauded into taking out those loans. The intent was to allow debt relief for students of for-profit institutions who are saddled with with enormous loans when the education has little or no economic benefit. On paper, the CEC students are eligible for this program but DeVos has been reluctant to allow any borrowers to take advantage of the program. It's been an ongoing legal matter.[2] [1]https://www.capemaycountyherald.com/news/government/article_cedde136-0f87-11e9-9b44-43d0aa9ceefd.html https://www.capemaycountyherald.com/news/government/article_... [2]https://www.forbes.com/sites/zackfriedman/2018/10/17/student-loan-forgiveness-devos/#7f6777a86fd6 https://www.forbes.com/sites/zackfriedman/2018/10/17/student...
mirimir 8y ago
If it's been established that there was fraud, I'd think that they would have claims. If Career Education has any capital left, there's potential for a class action. And if I remember correctly, plaintiffs can demand treble damages.
- vinceguidry 8y ago
  > If Career Education has any capital left, there's potential for a class action. I'm guessing there isn't any capital left.
  - leereeves 8y ago
    Is it possible to sue the executives and investors? Morally it seems appropriate. Execs who participated in or knew about and didn't report fraud sound like accomplices, and investors who received the proceeds of criminal activity shouldn't be able to keep those proceeds.
    - vinceguidry 8y ago
      Piercing the veil is deliberately kept difficult by the justice system. You need concrete proof, which is easily destroyed.
olefoo 8y ago
Clearly since a few people were able to succeed in engaging with a thouroughly corrupt system; everything is fine and there is NO NEED TO FIX ANYTHING. Thank you for clearing that up for us.
- zamadatix 8y ago
  I read their comment the exact opposite way you did - that the corrupt system would get by without paying these people back.

And this settlement only covers loans that students took out with the school directly. Any students with federal loans are still on the hook for every penny. Edit: Source for anyone interested[1]. Federal law provides individuals with federal student loans to discharge their loans under the "borrower defense" if the students were defrauded into taking out those loans. The intent was to allow debt relief for students of for-profit institutions who are saddled with with enormous loans when the education has little or no economic benefit. On paper, the CEC students are eligible for this program but DeVos has been reluctant to allow any borrowers to take advantage of the program. It's been an ongoing legal matter.[2] [1]https://www.capemaycountyherald.com/news/government/article_cedde136-0f87-11e9-9b44-43d0aa9ceefd.html https://www.capemaycountyherald.com/news/government/article_... [2]https://www.forbes.com/sites/zackfriedman/2018/10/17/student-loan-forgiveness-devos/#7f6777a86fd6 https://www.forbes.com/sites/zackfriedman/2018/10/17/student...

mirimir 8y ago

If it's been established that there was fraud, I'd think that they would have claims. If Career Education has any capital left, there's potential for a class action. And if I remember correctly, plaintiffs can demand treble damages.

vinceguidry 8y ago
> If Career Education has any capital left, there's potential for a class action. I'm guessing there isn't any capital left.
- leereeves 8y ago
  Is it possible to sue the executives and investors? Morally it seems appropriate. Execs who participated in or knew about and didn't report fraud sound like accomplices, and investors who received the proceeds of criminal activity shouldn't be able to keep those proceeds.
  - vinceguidry 8y ago
    Piercing the veil is deliberately kept difficult by the justice system. You need concrete proof, which is easily destroyed.

olefoo 8y ago

Clearly since a few people were able to succeed in engaging with a thouroughly corrupt system; everything is fine and there is NO NEED TO FIX ANYTHING. Thank you for clearing that up for us.

zamadatix 8y ago
I read their comment the exact opposite way you did - that the corrupt system would get by without paying these people back.