Taxpayers Could Lose Billions If Students Walk Away From Loans
Interns from around the city gather signs before a protest on the Senate steps to urge the Senate to act on a House passed bill, Smarter Solutions for Students Act, which would prevent student loan interest rates from doubling, in this June 28, 2013 file photo.
Photographer: Tom Williams/CQ Roll Call via AP ImagesCody Roderiques, a college senior, owes the federal government more than $100,000 for his student loans. He may not have to pay taxpayers back.
That’s because the New England Institute of Art is vanishing around him. On the campus of the for-profit college near Boston, studios were shuttered, teachers lost their jobs and the school announced in May it was closing for good. Under U.S. law, the institution’s death might excuse Roderiques, who will graduate in December, from his loan debt.