These leaders claim that Corinthian, through the schools that it operated like Everest Institute, Heald College and Wyotech, engaged in predatory recruitment practices that harmed thousands of working adults now saddled with large debts and no degrees, many of whom were first-generation college students.
In one letter to U.S. Education Secretary Arne Duncan, Senator Warren and 11 of her colleagues urged the government to utilize its authority "to immediately discharge federal student loans incurred by borrowers who have claims against Corinthian Colleges, Inc."
Mother Jones magazine reports that Senator Warren has devoted considerable energy to the student debt crisis since gaining election in 2012.
"The first bill she introduced upon her arrival in the Senate in 2013 proposed allowing students to obtain loans at the same low rate the Federal Reserve gives to banks," the magazine writes. "That bill went nowhere, so the following year Warren returned with a second proposal to allow Americans to refinance their student debt at current interest rate levels. Senate Republicans blocked it. Now Warren is turning to the Department of Education, which, she argues, already has the power to address the problem. The department, which Congress has empowered to administer student loan programs, has broad authority to collect unpaid loans. But in many cases, it also have the authority to reduce or wipe away debts."