Some of the student activists who are urging the U.S. Department of Education to grant more sweeping loan forgiveness for debt incurred at the now-defunct Corinthian Colleges campuses are set to receive $4 million to continue to press their case -- and possibly haul the department into court over the issue.
A bankruptcy judge on Wednesday approved Corinthian's plan to liquidate its assets, earmarking about $4.3 million for a special fund for former students.
The money won't go to students directly but will instead be used to pursue discharges of billions of dollars of federal student loans, according to Scott Gautier of Robins Kaplan LLP, which represented the student committee.
"The department has made clear that they’re not going to provide the loan discharges that these students deserve without a fight," Gautier said. "Now we have resources to put up a fight."
Read more at Inside Higher Ed: https://www.insidehighered.com/news/2015/08/27/judge-approves-corinthian-liquidation-plan-leaving-4-million-student-loan-discharge