$150 Million In Student Loan Debt Cancelled After For-Profit Colleges Shut Down | NBC Nightly News

$150 Million In Student Loan Debt Cancelled After For-Profit Colleges Shut Down | NBC Nightly News

August 22, 2019 4 By Stanley Isaacs


THAT LATER WENT BANKRUPT. CRITICS SAY IT’S NOT BANKRUPT. CRITICS SAY IT’S NOT ENOUGH. CRITICS SAY IT’S NOT ENOUGH. HERE’S MATT BRADLEY. ENOUGH. HERE’S MATT BRADLEY.>>THE JOBS OF HERE’S MATT BRADLEY.>>THE JOBS OF TOMORROW ARE HERE.>>THE JOBS OF TOMORROW ARE HERE.>>Reporter: TOMORROW ARE HERE.>>Reporter: FOR-PROFIT COLLEGES>>Reporter: FOR-PROFIT COLLEGES MADE BIG PROMISES. FOR-PROFIT COLLEGES MADE BIG PROMISES.>>AND YOU HAVE TO MADE BIG PROMISES.>>AND YOU HAVE TO HAVE WHAT IT TAKES TO>>AND YOU HAVE TO HAVE WHAT IT TAKES TO MASTER THOSE FIELDS. HAVE WHAT IT TAKES TO MASTER THOSE FIELDS.>>Reporter: THE MASTER THOSE FIELDS.>>Reporter: THE STUDENTS LIKE JOSEPH>>Reporter: THE STUDENTS LIKE JOSEPH WHITE SAY WENT STUDENTS LIKE JOSEPH WHITE SAY WENT UNFULFILLED. WHITE SAY WENT UNFULFILLED.>>I’M IN A LITTLE UNFULFILLED.>>I’M IN A LITTLE TINY APARTMENT AND>>I’M IN A LITTLE TINY APARTMENT AND THAT’S ALL I CAN TINY APARTMENT AND THAT’S ALL I CAN POSSIBLY AFFORD. THAT’S ALL I CAN POSSIBLY AFFORD.>>THE 41-YEAR-OLD IS POSSIBLY AFFORD.>>THE 41-YEAR-OLD IS STRUGGLING TO PAY OFF>>THE 41-YEAR-OLD IS STRUGGLING TO PAY OFF NEARLY $200,000 IN STRUGGLING TO PAY OFF NEARLY $200,000 IN STUDENT DEBT ON LESS NEARLY $200,000 IN STUDENT DEBT ON LESS THAN $40,000 A YEAR, STUDENT DEBT ON LESS THAN $40,000 A YEAR, BUT LAST WEEK’S RULING THAN $40,000 A YEAR, BUT LAST WEEK’S RULING TO CANCEL $150 MILLION BUT LAST WEEK’S RULING TO CANCEL $150 MILLION OF STUDENT LOAN DEBT TO CANCEL $150 MILLION OF STUDENT LOAN DEBT ONLY APPLIES TO OF STUDENT LOAN DEBT ONLY APPLIES TO STUDENTS WHO ATTENDING ONLY APPLIES TO STUDENTS WHO ATTENDING FOR-PROFIT SCHOOLS STUDENTS WHO ATTENDING FOR-PROFIT SCHOOLS WHEN THEY SHUT DOWN, FOR-PROFIT SCHOOLS WHEN THEY SHUT DOWN, SO WHITE DOESN’T WHEN THEY SHUT DOWN, SO WHITE DOESN’T QUALIFY. SO WHITE DOESN’T QUALIFY. HE GRADUATED FROM ITT QUALIFY. HE GRADUATED FROM ITT TECH BEFORE IT WENT HE GRADUATED FROM ITT TECH BEFORE IT WENT BANKRUPT IN 2016. TECH BEFORE IT WENT BANKRUPT IN 2016. HE HOPES THE COURTS BANKRUPT IN 2016. HE HOPES THE COURTS WILL GO FURTHER. HE HOPES THE COURTS WILL GO FURTHER.>>IF IT’S A BAD OR WILL GO FURTHER.>>IF IT’S A BAD OR POOR PERFORMING>>IF IT’S A BAD OR POOR PERFORMING SCHOOL, THEN I DON’T POOR PERFORMING SCHOOL, THEN I DON’T BELIEVE THAT I SHOULD SCHOOL, THEN I DON’T BELIEVE THAT I SHOULD BE RESPONSIBLE FOR BELIEVE THAT I SHOULD BE RESPONSIBLE FOR THOSE LOANS. BE RESPONSIBLE FOR THOSE LOANS.>>Reporter: HUNDREDS THOSE LOANS.>>Reporter: HUNDREDS OF FOR-PROFIT COLLEGE>>Reporter: HUNDREDS OF FOR-PROFIT COLLEGE CAMPUSES HAVE SHUT OF FOR-PROFIT COLLEGE CAMPUSES HAVE SHUT DOWN IN THE PAST FOUR CAMPUSES HAVE SHUT DOWN IN THE PAST FOUR YEAR, INCLUDING DOWN IN THE PAST FOUR YEAR, INCLUDING CORINTHIAN COLLEGE IN YEAR, INCLUDING CORINTHIAN COLLEGE IN 2015 AND THE EDUCATION CORINTHIAN COLLEGE IN 2015 AND THE EDUCATION CORP RAVINGS AMERICA 2015 AND THE EDUCATION CORP RAVINGS AMERICA JUST TWO WEEKS AGO. CORP RAVINGS AMERICA JUST TWO WEEKS AGO. EDUCATION SECRETARY JUST TWO WEEKS AGO. EDUCATION SECRETARY BETSY DEVOS OPPOSED EDUCATION SECRETARY BETSY DEVOS OPPOSED CANCELLING THE LOANS BETSY DEVOS OPPOSED CANCELLING THE LOANS BUT CALLS PAYING FOR CANCELLING THE LOANS BUT CALLS PAYING FOR COLLEGE A CRISIS. BUT CALLS PAYING FOR COLLEGE A CRISIS.>>STUDENTS HAVE TO COLLEGE A CRISIS.>>STUDENTS HAVE TO HAVE MORE INFORMATION>>STUDENTS HAVE TO HAVE MORE INFORMATION ABOUT THE DEBT THAT HAVE MORE INFORMATION ABOUT THE DEBT THAT THEY ARE ASSUMING AND ABOUT THE DEBT THAT THEY ARE ASSUMING AND UNDERSTAND THE THEY ARE ASSUMING AND UNDERSTAND THE IMPLICATIONS. UNDERSTAND THE IMPLICATIONS.>>THE DEPARTMENT OF IMPLICATIONS.>>THE DEPARTMENT OF EDUCATION DIDN’T>>THE DEPARTMENT OF EDUCATION DIDN’T RESPOND REQUESTS FOR EDUCATION DIDN’T RESPOND REQUESTS FOR COMMENT, BUT EXPERTS RESPOND REQUESTS FOR COMMENT, BUT EXPERTS SAY SOME SCHOOLS USED COMMENT, BUT EXPERTS SAY SOME SCHOOLS USED PREDATORY PRACTICES TO SAY SOME SCHOOLS USED PREDATORY PRACTICES TO RECRUIT STUDENTS AND PREDATORY PRACTICES TO RECRUIT STUDENTS AND ENCOURAGE THEM TO TAKE RECRUIT STUDENTS AND ENCOURAGE THEM TO TAKE FEDERAL LOANS. ENCOURAGE THEM TO TAKE FEDERAL LOANS.>>THE DEPARTMENT OF FEDERAL LOANS.>>THE DEPARTMENT OF EDUCATION IS>>THE DEPARTMENT OF EDUCATION IS ABSOLUTELY COMPLICIT EDUCATION IS ABSOLUTELY COMPLICIT IN CREATING A ABSOLUTELY COMPLICIT IN CREATING A SITUATION WHERE IN CREATING A SITUATION WHERE STUDENTS HAD BEEN SITUATION WHERE STUDENTS HAD BEEN CHEATED AND THEY ARE STUDENTS HAD BEEN CHEATED AND THEY ARE LABORING UNDER THE CHEATED AND THEY ARE LABORING UNDER THE WEIGHT OF THIS DEBT, LABORING UNDER THE WEIGHT OF THIS DEBT, THAT THEY DIDN’T GET WEIGHT OF THIS DEBT, THAT THEY DIDN’T GET ANYTHING FOR AND THEY THAT THEY DIDN’T GET ANYTHING FOR AND THEY ARE UNABLE TO PAY. ANYTHING FOR AND THEY ARE UNABLE TO PAY.>>Reporter: WHITE ARE UNABLE TO PAY.>>Reporter: WHITE SAYS HE’S WON OF>>Reporter: WHITE SAYS HE’S WON OF MILLIONS. SAYS HE’S WON OF MILLIONS.>>I’VE MET PEOPLE MILLIONS.>>I’VE MET PEOPLE THAT HAVE BEEN>>I’VE MET PEOPLE THAT HAVE BEEN HOMELESS BECAUSE OF THAT HAVE BEEN HOMELESS BECAUSE OF THEIR PRIVATE HOMELESS BECAUSE OF THEIR PRIVATE FOR-PROFIT COLLEGE THEIR PRIVATE FOR-PROFIT COLLEGE DEBT. FOR-PROFIT COLLEGE DEBT.>>WHO TRIED TO GET DEBT.>>WHO TRIED TO GET AHEAD BUT FELL FURTHER>>WHO TRIED TO GET AHEAD BUT FELL FURTHER BEHIND. AHEAD BUT FELL FURTHER BEHIND. KATE, WE SHOULD KNOW BEHIND. KATE, WE SHOULD KNOW THIS AUTOMATIC LOAN KATE, WE SHOULD KNOW THIS AUTOMATIC LOAN CANCELLATION, IT ONLY THIS AUTOMATIC LOAN CANCELLATION, IT ONLY APPLIES TO 15,000 CANCELLATION, IT ONLY APPLIES TO 15,000 STUDENTS. APPLIES TO 15,000 STUDENTS. THAT’S REAL JUST A STUDENTS. THAT’S REAL JUST A CROP IN THE BUCKET. THAT’S REAL JUST A CROP IN THE BUCKET. THE EDUCATION CROP IN THE BUCKET. THE EDUCATION DEPARTMENT SAYS MORE THE EDUCATION DEPARTMENT SAYS MORE THAN 100,000 PEOPLE DEPARTMENT SAYS MORE THAN 100,000 PEOPLE ARE STILL WAITING TO THAN 100,000 PEOPLE ARE STILL WAITING TO HEAR BACK ABOUT THE ARE STILL WAITING TO HEAR BACK ABOUT THE STATUS OF THEIR HEAR BACK ABOUT THE STATUS OF THEIR CLAIMS, BUT STATUS OF THEIR CLAIMS, BUT POLITICIANS ARE TAKING CLAIMS, BUT POLITICIANS ARE TAKING NOTICE BECAUSE THE TOP POLITICIANS ARE TAKING NOTICE BECAUSE THE TOP DEMOCRAT ON THE SENATE NOTICE BECAUSE THE TOP DEMOCRAT ON THE SENATE EDUCATION COMMITTEE DEMOCRAT ON THE SENATE EDUCATION COMMITTEE SAYS THE TRUMP EDUCATION COMMITTEE SAYS THE TRUMP ADMINISTRATION NEEDS