Two Minute Tips

Students seek loan forgiveness

March 26, 2015

Share this article:

Photo via Flickr user Sarah Mirk

Student loan debt now tops $1 trillion in the United States, and seems like an inescapable reality for many young people. Still, some are trying their best to get out from under their debt loads.

One of the more drastic examples of trouble that millennials face with student loan debt comes from the Corinthian 15, a group of former students at the for-profit chain Corinthian Colleges, Inc. They refuse to pay back their student loan debt.

Their reason? The company began selling off schools and faced a shutdown after running what the Consumer Financial Protection Bureau called a “predatory lending scheme.”

One of the students, Mallory Heiney, wrote an op-ed for the Washington Post last week explaining the incredible debt that she and a number of other students took on while attending the Corinthian owned schools.

It’s a significant issue for students at for-profit schools. According to The New York Times, the money owed by these students could account for a quarter of all federal student aid debt.

The Corinthian students also maintain the teaching standards at the schools were deplorable. In refusing to pay their loans, the students say Corinthian Colleges, Inc. failed to fulfill its end of the loan agreement by not properly educating its students, often leaving graduates unemployed.

Students who take out federal loans can only use personal bankruptcy to get rid of them in rare instances, which means students face serious consequences for not paying them back.

The group’s protest highlights what could become one of the defining issues of the millennial generation.

Some, including Sen. Elizabeth Warren, a Democrat from Massachusetts, call for the forgiveness of all federal student loans currently on the books. While that might be drastic, doing nothing about the situation already is proving to have a negative affect on millennials’ future.

Story Ideas

What happens if you don’t pay your student loans?

Insurgent star still paying off loans.

A previous version of this article incorrectly stated the legal status of Corinthian Colleges, Inc. in the United States. 

More Like This...

Experts tell journalism grads, be real

The specter of COVID-19 no longer looms over the job market as it did in 2020, according to experts. Now that hiring is rebounding, and inflation is on the rise,

Reporting on student loan debt

Student debt has been steadily increasing for the past decade. In 2007, the average student loan debt was $15,257. In 2020, this rose to $36,635. Now, the student holds an

Two Minute Tips

Sign up now.
Get one Tuesday.

Every Tuesday we send out a quick-read email with tips for business journalism.

Subscribers also get access to the Tip archive.

Get Two Minute Tips For Business Journalism Delivered To Your Email Every Tuesday

Two Minute Tips

Every Tuesday we send out a quick-read email with tips for business journalism. Sign up now and get one Tuesday.

Our New Look
The Reynolds Center for Business Journalism is starting 2023 with a new look that we hope better illustrates our core mission to provide accurate and authoritative resources about business journalism, in order to help both reporters and news consumers understand the importance of business news and to demystify the sometimes arcane topics it covers.
Businesses, markets, and economies move in cycles – ups and downs – which is why our new logo contains a “candlestick” chart representing increases as well as downturns, and serves as a reminder that volatility is an unavoidable attribute of modern life. But it’s also possible to prepare for volatility by being well informed, and informing the general public to help level the information playing field is the primary goal of business journalism. The Reynolds Center is committed to supporting that goal, which is why the candlestick pattern in our logo merges directly into the name of our founding sponsor, Donald W. Reynolds.
Our new logo comes with a shorter name. Business is borderless, and understanding the global links in supply chains, trade, and flows of funds and people is essential to make sense of our fast-paced, globalized world. So we’re dropping the word “National” from our name and will aim to provide content that is applicable to business news globally.
We hope you like the new look. Best wishes for 2023!