I wouldn’t pretend to know the legality behind all of it. Maybe CommieKay would know more. Personally, I would wipe 50k from everyone’s Fed loans to stimulate the economy and allow people to put the private ones into bankruptcy.
What I do know is that private (for-profit) colleges were using extremely predatory tactics going back to Bush in 2000, recruiting from military bases, making promises to poor people feeling trapped, etc.
My gf used to work at ITT as a recruiter. She lasted about 6 months. She couldn’t sleep at night.
ITT no longer exists. Those degrees are toilet paper.
Theres dozens of other colleges that did the same thing.