As the Institute for College Access & Success points out, while Corinthian was barred from enrolling new students in California on April 17, they were still signing up students at campuses outside the state up until a few days ago. But we did just see a giant strategic default over the weekend – from a for-profit college.Ĭorinthian Colleges shut down 30 campuses nationwide on Sunday, abandoning 16,000 students they promised to provide a worthwhile education. This was a great theory, except for the fact that it never happened in large numbers.
For years, financial-industry mouthpieces warned of the dangers of strategic default, the idea that if you give homeowners relief on their mortgages, they would simply stop paying to get a better deal.
