Student Loan Debt informational blog by Constance d’Angelis, Esq.
STUDENT LOAN PREDATORY LENDING SCHEME enabled by Private Equity Firm
SEC shuts down PRIVATE EQUITY firm for defrauding 1,500 investors.
- Consumer Finance Bureau and 7 States Attorneys General sue PRIVATE EQUITY firm.
- Proposed Settlement $183.3K for 41,000 harmed Student Borrowers.
- Private Equity Firm (Aequitas Capital Management, Inc. & related entities – Lake Oswego, Oregon) purchased or funded about $230K Corinthian Colleges’ private loans.
- Aequitas and Corinthian plotted together.
- Corinthian payed Aequitas to engage in charade that school had enough revenue to qualify for federal loan dollars.
- Both school and private equity firm knew most Corinthian student borrowers would default.
- Settlement – if approved by U.S. District Court in Oregon – required to:
- Forgive loans to eligible borrowers
- Forgive loans in default
- Reduce other loans by more than half
A copy of the CFPB’s complaint can be found at: http://files.consumerfinance.
A copy of the proposed settlement can be found at: http://files.consumerfinance.