How a $1 billion judgment against a for-profit college could reshape economic policies.

  • Kamala Harris won a $1 billion judgment against Corinthian Colleges for scamming students.
  • Nathan Hornes, a former student, became an activist for debt relief after being misled by Everest College.
  • Harris’s lawsuit against Corinthian sparked a movement that led to debt cancellation for many former students.
  • The Biden administration announced in 2022 that it would cancel all outstanding student debt for Corinthian borrowers.
  • Harris’s actions as attorney general highlight her commitment to consumer protection and corporate accountability.

In 2014, Nathan Hornes was about to graduate from Everest College when he was pressured to sign a waiver preventing him from suing the school if he couldn’t find a job. Despite his reservations, he signed it, which led him to become an activist fighting for student debt relief. Hornes had been misled about job prospects and ended up with significant student loans instead of the grants he was promised. nnFortunately, he wasn’t alone. In 2013, Kamala Harris, then California’s attorney general, filed a lawsuit against Corinthian Colleges, the parent company of Everest. This legal action was a beacon of hope for Hornes and other students who felt powerless against the institution. Harris’s efforts contributed to the eventual collapse of Corinthian and the cancellation of debts for many affected students. nnDespite the progress, it took years of activism and pressure on the government to achieve relief. Hornes and his peers organized a debt strike and pushed for standardized debt cancellation processes. In 2022, the Biden administration announced it would wipe out all remaining student debt for Corinthian borrowers, a victory Hornes celebrated. nnHarris’s role in this saga showcases her commitment to holding corporations accountable and fighting for economic fairness. Her actions have been praised by figures like Senator Elizabeth Warren, who highlighted Harris’s track record in consumer protection. Legal experts believe that Harris’s experience with Corinthian could inform her approach to other industries, particularly in enforcing laws that protect consumers from corporate malfeasance. nnWhile the fight for justice continues for some former students, Harris’s legacy in this case has helped shift the narrative around student debt, emphasizing that it is not solely the responsibility of individuals but also a systemic issue. As she campaigns for higher office, her past actions may signal a future commitment to aggressive enforcement of consumer protections across various sectors.·

Factuality Level: 7
Factuality Justification: The article provides a detailed account of Nathan Hornes’ experiences with Everest College and the subsequent activism surrounding student debt relief. While it presents factual information and includes quotes from relevant individuals, it also contains some elements of bias, particularly in its portrayal of political figures and their actions. Additionally, the article could benefit from a more balanced perspective on the broader implications of the issues discussed.·
Noise Level: 8
Noise Justification: The article provides a detailed account of Nathan Hornes’ activism against student debt and the role of Kamala Harris in addressing the issues surrounding Corinthian Colleges. It holds powerful entities accountable, explores the consequences of their actions on students, and presents a thoughtful analysis of the systemic issues in the student loan industry. The article stays on topic, supports its claims with evidence, and offers insights into the ongoing struggle for debt relief, making it a valuable read.·
Private Companies: Corinthian Colleges,Everest College,Florida Metropolitan University
Key People: Kamala Harris (Vice President of the United States), Nathan Hornes (Activist), Elizabeth Warren (Senator), Sabeel Rahman (Professor at Cornell Law School), Aaron Ament (President of the National Student Legal Defense Network), Miguel Cardona (Education Secretary), Rajesh Nayak (Fellow at Harvard Law School’s Center for Labor and a Just Economy), Luke Herrine (Assistant Professor at the University of Alabama School of Law), Alicia Davis (Activist), Stacey Chmura (Former student)

Financial Relevance: Yes
Financial Markets Impacted: The article discusses the impact of student debt cancellation on borrowers from Corinthian Colleges, which affects the financial markets related to student loans and higher education funding.
Financial Rating Justification: The article focuses on the issues surrounding student debt, the legal actions taken against a for-profit college, and the implications for borrowers and the education system, making it highly relevant to financial topics.·
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: The article discusses the long-term effects of student debt and activism related to for-profit colleges, but it does not report on any extreme events that occurred in the last 48 hours.·
Move Size: No market move size mentioned.
Sector: All
Direction: Up
Magnitude: Large
Affected Instruments: Stocks

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