Students who attended a university located in El Paso, Texas can tell goodbye for their education loan debt. The private student education loans of over 7,000 former Vista University students were purchased and wiped out through the Rolling Jubilee Fund.
The nonprofit social welfare organization canceled $16 million in private student loans. The fund is a sister project towards the Debt Collective, a union of debtors with roots within the Occupy Wall Street movement leading the battle to cancel debt and change the way social services and public merchandise is delivered.
The organization shared this news of his donation on Twitter.
\”We purchased $16 million in private student loans owed by over 7,500 students who visited Vista College – and canceled them. They are actually gone. We erased them. #CancelStudentDebt,\” Your debt Collective tweeted.
NEW: We purchased $16 million in private student education loans owed by a lot more than 7,500 students who visited Vista College – and canceled them. They are actually gone. We erased them. #CancelStudentDebt pic.twitter.com/7hIlaVIgdC
– The collective debt (@StrikeDebt) June 24, 2022
\”Like all for-profit colleges, Vista College lied to and took advantage of students – primarily low-income veterans and black/brown people,\” added the business inside a follow-up tweet. \”Any federal student debt still owed by these students should be forgiven, and we're fighting to create that happen.\”
Vista College was on a list of schools the Federal Trade Commission warned of allegedly making false promises to students about job opportunities and potential earnings after graduation. Violators in prison for these offenses face heavy financial penalties.
\”For too long, unscrupulous for-profit schools have attacked students with impunity, with no punishment once they defraud their students and put them into debt,\” FTC Chairwoman Lina M. Khan said inside a statement. of 2022. \”The FTC is resurrecting an inactive authority to discourage wrongdoing and hold accountable bad actors who abuse students and taxpayers.
The school closed abruptly at the outset of last October after which declared bankruptcy, leaving students without transcripts or refunds. The students began joining a class action lawsuit from the institution later that month.
The Debt Collective says Vista College may have targeted low-income people and people of color to profit from lifelong debt. As an effect, the union plans to file a class-wide Borrower's Defense against the Refund Demand on behalf of the scholars.
In May, the fund canceled debts of $1.7 million in unpaid student balances owed by 462 people who attended Bennett College in New york. A spokesperson for the organization told USA Today it chose Bennett, a small, historically black private liberal arts college for women, because black women on average have student loan balances greater than any other group.
Canceled debts only include money directly owed towards the school, not federal loans.
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