by Christine Alexis
Finally, some bright news for college graduates and students burdened by student debt.
The Rolling Jubilee Fund recently purchased $4 million in private student loan debt and relieved thousands of students of staggering financial burdens. And they did it for little over $100,000 because they bought the debt at a discount.
Yes, you read that correctly!
They helped 2,761 students at Everest College say goodbye to debts they couldn’t afford to pay.
In September, the Consumer Financial Protection Bureau (CFPB) sued Everest’s parent company, Corinthian Colleges, and accused the group of predatory lending tactics, false promises of job placement and career services to lure hopeful students to their schools.
ConsumerMojo reported that the CFPB asked for repayment from Corinthian Colleges for past and present students who, collectively, took out more than $500 million in private student loans.
In addition, the federal government sued Corinthian, and Corinthian Colleges responded by shutting their doors and selling off their debt.
This is where Rolling Jubilee came in, and purchased a portion of the debt at a fraction of what the students owed.
As a recent college grad, I applaud Rolling Jubilee. The activist group Strike Debt set up the online crowdsourcing campaign Rolling Jubilee specifically to raise money and buy debt from schools, hospitals or collection agencies for pennies on the dollar.
In November 2013, it bought $14.7 million in consumer medical debt and now focuses on student loans.
The national student debt still totals over $1 trillion. This makes $4 million seem like just the tip of the iceberg, but to the students who got a break at Everest, it makes a world of difference.
Strike Debt’s Rolling Jubilee project wants to pay off debt, but it also aims to highlight the underlying problem. The group hopes to shine a light on the underside of the debt market and educate consumers about predatory loan companies and the difficulties they create for students who want to improve their lives and get an education.
Strike Debt created a page for Corinthian students and borrowers to get information about federal legal action against Corinthian. They also list FAQ‘s so students can stay informed about the next phase of the Rolling Jubilee project.
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