A enterprise blog offering common US market insights. These schools had been gorging on government cash. Throughout the earlier six years, the assured student loan program had almost doubled to $12.four billion, while defaults had increased by a staggering 338 p.c. The bad debt was closely concentrated in faculties that paid salespeople on commission to sign up as many college students as potential with a purpose to harvest their grants and loans. Since lots of the levels had been basically nugatory, the students had little hope of ever getting out of debt.
Giddens has estimated that $1.6 billion disappeared from buyer accounts when the corporate, which filed for bankruptcy on October 31, 2011, improperly blended shopper funds with its personal cash. Since 2004, World Financial institution estimates point out that a minimum of a dozen bank-supported tasks physically or economically displaced more than 50,000 folks each.
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