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Gov’t Plan to Help More Students Erase Debt Raises Questions

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FILE - In this July 8, 2014 file photo, an Everest Institute sign is seen in a office building in Silver Spring, Md. The federal government will erase much of the debt of students who attended the now-defunct Corinthian Colleges, officials announced Monday, as part of a new plan that could cost taxpayers as much as $3.6 billion. (AP Photo/Jose Luis Magana, File)

In this July 8, 2014 file photo, an Everest Institute sign is seen in a office building in Silver Spring, Md. The federal government will erase much of the debt of students who attended the now-defunct Corinthian Colleges, officials announced Monday, as part of a new plan that could cost taxpayers as much as $3.6 billion. (AP Photo/Jose Luis Magana, File)

ANNE FLAHERTY, Associated Press

WASHINGTON (AP) — A government plan to wipe out loans for many of the students who attended the now-disgraced for-profit Corinthian Colleges raises serious questions about whether the White House or Congress should have done more to prevent the debacle.

Education Secretary Arne Duncan on Monday announced that the government would make it easier for former Corinthian students to erase their debt. About $3.6 billion in federal loans has been given to these students since 2010. That potentially puts the taxpayer on the hook for that amount, although officials say it’s unlikely that every loan will qualify for relief.

At the very least, the government is looking at footing the bill for hundreds of millions of dollars in student debt in what has become a major consumer bailout. Some advocates say the government should have done more sooner to intervene, while others are questioning the latest approach.

“Students have been hurt, but the department is establishing a precedent that puts taxpayers on the hook for what a college may have done,” said Sen. Lamar Alexander, R-Tenn., who chairs the Senate Education Committee.

Alexander said one of the problems has been an inherent conflict of interest with having the Education Department provide loans and regulate colleges.

“If your car is a lemon you don’t sue the bank that made the auto loan; you sue the car company,” he said.

Corinthian Colleges was one of the largest for-profit schools when it nearly collapsed last year and became a symbol of fraud in the world of higher education and student loans. According to investigators, Corinthian schools charged exorbitant fees, lied about job prospects for its graduates and, in some cases, encouraged students to lie about their circumstances to get more federal aid.

In a plan orchestrated by the Department of Education, some of the Corinthian schools closed while others were sold before the chain filed for bankruptcy this spring. The biggest question has been what should happen to the debt incurred by students whose schools were sold. The law already provides for debt relief for students of schools that close, so long as they apply within 120 days.

The latest plan expands debt relief to students who attended a now-closed school as far back as a year ago. And it streamlines the process for students whose schools were sold but believe they were victims of fraud. The Education Department will soon appoint a “special master” to oversee much of the program, who will support students at other for-profit schools who feel they’ve been victimized.

“We will make this process as easy as possible for them, including by considering claims in groups wherever possible, and hold institutions accountable,” Education Secretary Arne Duncan said in a statement.

The amount of debt relief could be staggering. Officials estimate that some 40,000 borrowers at the Heald College alone took on more than $540 million in loans that potentially qualify for debt relief. But the final amount could climb significantly when looking across all Corinthian Schools, which include Everest and WyoTech.

Former officials at Corinthian Colleges couldn’t be immediately reached for comment. A former lawyer for the school said he no longer represents the chain of colleges since it went bankrupt.

In a blog post Monday, the Debt Collective said the Education Department plan didn’t go far enough. The group said the plan would put in place “a bureaucratically tortured process designed to provide relief only to those who hear about it and can figure out how to navigate unnecessary red tape.”

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Online:

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Information on debt relief: http://1.usa.gov/1AY8HRd

Copyright 2015 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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Activism

OP-ED: AB 1349 Puts Corporate Power Over Community

Since Ticketmaster and Live Nation merged in 2010, ticket prices have jumped more than 150 percent. Activities that once fit a family’s budget now take significant disposable income that most working families simply don’t have. The problem is compounded by a system that has tilted access toward the wealthy and white-collar workers. If you have a fancy credit card, you get “presale access,” and if you work in an office instead of a warehouse, you might be able to wait in an online queue to buy a ticket. Access now means privilege.

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Bishop Joseph Simmons, Senior Pastor, Greater St. Paul Baptist Church, Oakland
Bishop Joseph Simmons, Senior Pastor, Greater St. Paul Baptist Church, Oakland

By Bishop Joseph Simmons, Senior Pastor, Greater St. Paul Baptist Church, Oakland

As a pastor, I believe in the power that a sense of community can have on improving people’s lives. Live events are one of the few places where people from different backgrounds and ages can share the same space and experience – where construction workers sit next to lawyers at a concert, and teenagers enjoy a basketball game with their grandparents. Yet, over the past decade, I’ve witnessed these experiences – the concerts, games, and cultural events where we gather – become increasingly unaffordable, and it is a shame.

These moments of connection matter as they form part of the fabric that holds communities together. But that fabric is fraying because of Ticketmaster/Live Nation’s unchecked control over access to live events. Unfortunately, AB 1349 would only further entrench their corporate power over our spaces.

Since Ticketmaster and Live Nation merged in 2010, ticket prices have jumped more than 150 percent. Activities that once fit a family’s budget now take significant disposable income that most working families simply don’t have. The problem is compounded by a system that has tilted access toward the wealthy and white-collar workers. If you have a fancy credit card, you get “presale access,” and if you work in an office instead of a warehouse, you might be able to wait in an online queue to buy a ticket. Access now means privilege.

Power over live events is concentrated in a single corporate entity, and this regime operates without transparency or accountability – much like a dictator. Ticketmaster controls 80 percent of first-sale tickets and nearly a third of resale tickets, but they still want more. More power, more control for Ticketmaster means higher prices and less access for consumers. It’s the agenda they are pushing nationally, with the help of former Trump political operatives, who are quietly trying to undo the antitrust lawsuit launched against Ticketmaster/Live Nation under President Biden’s DOJ.

That’s why I’m deeply concerned about AB 1349 in its current form. Rather than reining in Ticketmaster’s power, the bill risks strengthening it, aligning with Trump. AB 1349 gives Ticketmaster the ability to control a consumer’s ticket forever by granting Ticketmaster’s regime new powers in state law to prevent consumers from reselling or giving away their tickets. It also creates new pathways for Ticketmaster to discriminate and retaliate against consumers who choose to shop around for the best service and fees on resale platforms that aren’t yet controlled by Ticketmaster. These provisions are anti-consumer and anti-democratic.

California has an opportunity to stand with consumers, to demand transparency, and to restore genuine competition in this industry. But that requires legislation developed with input from the community and faith leaders, not proposals backed by the very company causing the harm.

Will our laws reflect fairness, inclusion, and accountability? Or will we let corporate interests tighten their grip on spaces that should belong to everyone? I, for one, support the former and encourage the California Legislature to reject AB 1349 outright or amend it to remove any provisions that expand Ticketmaster’s control. I also urge community members to contact their representatives and advocate for accessible, inclusive live events for all Californians. Let’s work together to ensure these gathering spaces remain open and welcoming to everyone, regardless of income or background.

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Oakland Post: Week of December 31, 2025 – January 6, 2026

The printed Weekly Edition of the Oakland Post: Week of – December 31, 2025 – January 6, 2026

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2025 in Review: Seven Questions for Assemblymember Lori Wilson — Advocate for Equity, the Environment, and More

Her rise has also included several historic firsts: she is the only Black woman ever appointed to lead the influential Assembly Transportation Committee, and the first freshman legislator elected Chair of the California Legislative Black Caucus. She has also been a vocal advocate for vulnerable communities, becoming the first California legislator to publicly discuss being the parent of a transgender child — an act of visibility that has helped advanced representation at a time when political tensions related to social issues and culture have intensified. 

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Assemblymember Lori D. Wilson (D-Suisun City). File photo.
Assemblymember Lori D. Wilson (D-Suisun City). File photo.

By Edward Henderson, California Black Media 

Assemblymember Lori D. Wilson (D-Suisun City) joined the California Legislature in 2022 after making history as Solano County’s first Black female mayor, bringing with her a track record of fiscal discipline, community investment, and inclusive leadership.

She represents the state’s 11th Assembly District, which spans Solano County and portions of Contra Costa and Sacramento Counties.

Her rise has also included several historic firsts: she is the only Black woman ever appointed to lead the influential Assembly Transportation Committee, and the first freshman legislator elected Chair of the California Legislative Black Caucus. She has also been a vocal advocate for vulnerable communities, becoming the first California legislator to publicly discuss being the parent of a transgender child — an act of visibility that has helped advanced representation at a time when political tensions related to social issues and culture have intensified.

California Black Media spoke with Wilson about her successes and disappointments this year and her outlook for 2026.

What stands out as your most important achievement this year?

Getting SB 237 passed in the Assembly. I had the opportunity to co-lead a diverse workgroup of colleagues, spanning a wide range of ideological perspectives on environmental issues.

How did your leadership contribute to improving the lives of Black Californians this year?

The Black Caucus concentrated on the Road to Repair package and prioritized passing a crucial bill that remained incomplete during my time as chair, which establishes a process for identifying descendants of enslaved people for benefit eligibility.

What frustrated you the most this year?

The lack of progress made on getting Prop 4 funds allocated to socially disadvantaged farmers. This delay has real consequences. These farmers have been waiting for essential support that was promised. Watching the process stall, despite the clear need and clear intent of the voters, has been deeply frustrating and reinforces how much work remains to make our systems more responsive and equitable.

What inspired you the most this year?

The resilience of Californians persists despite the unprecedented attacks from the federal government. Watching people stay engaged, hopeful, and determined reminded me why this work matters and why we must continue to protect the rights of every community in our state.

What is one lesson you learned this year that will inform your decision-making next year?

As a legislator, I have the authority to demand answers to my questions — and accept nothing less. That clarity has strengthened my approach to oversight and accountability.

In one word, what is the biggest challenge Black Californians are facing currently?

Affordability and access to quality educational opportunities.

What is the goal you want to achieve most in 2026?

Advance my legislative agenda despite a complex budget environment. The needs across our communities are real, and even in a tight fiscal year, I’m committed to moving forward policies that strengthen safety, expand opportunity, and improve quality of life for the people I represent.

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