The U.S. Department of Education's ill-advised effort to broker the sale of 56 campuses of the discredited Corinthian for-profit college chain to ECMC, a student debt collection operation, has hit some snags.
Treating Corinthian as too big to fail, and thus sacrificing students and common sense, simply to find a buyer, any buyer, is a terrible course and a terrible precedent. The time to stop this bad decision is right now.
Student lenders have collection powers denied most creditors. Credit card companies can't garnish your wages without a court order. A federal student loan collector can garnish your wages just by sending a notice in the mail to your employer.