Occupy Wall Street’s Strike Debt initiative announced Wednesday that it has abolished $3.8 million worth of private student loan debt belonging to 2,700 people.
The group bought the debts from collectors for a little more than $100,000, and then forgave what was owed. The $100,000 came from a pool of about $700,000 that Strike Debt has received through fundraising events, CNN reported. Last year, the group abolished more than $15 million worth of emergency room bills for thousands of people, CNN said.
The student debts had belonged to 2,700 people who had taken out private loans to attend Everest College, which is run by Corinthian Colleges.
Corinthian Colleges is being sued by the Consumer Financial Protection Bureau over allegations of predatory lending practices.
“Despite Corinthian’s dire financial straits, checkered past, and history of lying to and misleading vulnerable students, tens of thousands of people may still be liable for the loans they have incurred while playing by the rules and trying to get an education,” a Strike Debt member told CNN.
Corinthian spokesman Kent Jenkins disputes the bureau’s allegations, arguing that the company’s default rate is lower than other community colleges and its graduation and job placement rates are higher, CNN reported.
• Jessica Chasmar can be reached at jchasmar@washingtontimes.com.
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