[Congressional Record (Bound Edition), Volume 160 (2014), Part 7]
[Extensions of Remarks]
[Pages 10110-10111]
[From the U.S. Government Publishing Office, www.gpo.gov]




   INTRODUCTION OF THE PROTECT STUDENTS FROM FAILING INSTITUTIONS ACT

                                  _____
                                 

                            HON. JANICE HAHN

                             of california

                    in the house of representatives

                        Thursday, June 12, 2014

  Ms. HAHN. Mr. Speaker, this past January, students attending a local 
for-profit college, Career Colleges of America (CCA), in my district 
showed up to class only to find the doors of their school locked. CCA's 
longtime financial troubles had finally overcome the business and it 
was forced to close, abandoning its students and faculty.
  The result was a nightmare for the over 800 students enrolled at the 
three CCA branches in Southern California. Many of these students are 
low-income and had taken out up to $30,000 in federal loans and Pell 
Grants to put toward an education they thought would lead to a career 
in the health care industry. These students were working to better 
themselves, but through no fault of their own are now saddled with a 
financial headache and no degree to show for it.
  Unfortunately, stories like this are not unique. We have seen this 
happen before in which irresponsible institutions take advantage of 
their students, aiming to profit off of them rather than educate them, 
and upon closure, leave their students in financial ruin. More often 
than not, credits cannot transfer and these students are forced to 
start over completely at a new institution.
  There are steps we can take to make these students whole again. 
Fortunately, many of these students are often able to have their 
federal loans discharged, relieving them of tens of thousands of 
dollars of burdensome debt if their school closes. However, students 
who attended a campus that closed but was part of a larger institution 
that remained open often unable to have their loans discharged. 
Moreover, any Pell Grants that the student had received to attend that 
institution still count toward their lifetime limit, often making it 
more difficult and costly when the students make another attempt to 
earn their degree.
  That is why I am introducing the Protect Students from Failing 
Institutions Act, which would ensure every student who was enrolled in 
a campus that closed, regardless of whether the institution closes or 
not, can have their federal loans discharged and their Pell Grants 
restored. These small changes will mean so much to these victimized 
students as they continue their education.

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