The Federal Government is suing to wipe away $569 million in outstanding private debt held by tens of thousands of current and former students: For-profit Heald, Everest and WyoTech Feels The Wrath

The San Jose Mercury reports:

In an unusual move to help those who took out private loans to attend the for-profit Heald, Everest and WyoTech colleges, the federal government is suing to wipe away $569 million in outstanding private debt held by tens of thousands of current and former students.

The Consumer Financial Protection Bureau on Tuesday became the latest in a line of federal and state agencies, including California's attorney general, to sue the failing California-based Corinthian Colleges, once owner of nearly 100 U.S. campuses.

The federal agency has accused the career-college chain of predatory conduct and lending abuses, including "bullying" students while they were in school to collect the money.

Someone has to be demonized as the higher education bubble bursts. We all know non-profit colleges would never do this kind of thing. (We are just kidding, so don't send us e-mail on this one.)