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Activists Wipe Out $16 Million in Student Loans From for-Profit School

Activists Wipe Out $16 Million in Student Loans From for-Profit School #Activists #Wipe #Million #Student #Loans #forProfit #School Welcome to JibGlobe, here is the new resources we have for you today:

The Debt Collective erased $16 million in private student loans for former Vista College students.
For-profit Vista shut down last year and was put on notice by the FTC for potential fraud.
Activists believe the students might qualify for federal debt relief if they can prove wrongdoing.

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Students who attended a now defunct for-profit college just got a million-dollar gift.

On Friday, the Debt Collective — a debtor’s union pushing for abolishment of all forms of debt — announced its sister organization, the Rolling Jubilee Fund bought, and wiped out, $16 million in private student loans for over 7,000 former students that attended Vista College. Vista was a for-profit school based in El Paso, Texas that declared bankruptcy and shut down last year, and it was included in the list of schools the Federal Trade Commission put on notice for allegedly making false claims to students regarding earnings and job potential post-graduation.

“We bought the private student loan listed above and canceled it,” the group wrote in a letter it is sending to students, informing them of the private student-loan relief. “You no longer owe the balance of this debt. You do not need to pay us, nor should you pay anyone else for this debt—it is gone!” 

Thomas Gokey, legal and policy director at the Debt Collective, told Insider the group’s efforts are “about more than just the private student loans we purchased and abolished,” which were owed to the college. The Debt Collective is planning to file a group-wide borrower defense to repayment claim on behalf of the students, which is federal student-loan relief provided to borrowers who prove they were defrauded by a for-profit school.

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