News

Update | In the Fight for Student Loan Relief

For years, Corinthian Colleges, a network of over one hundred for-profit schools, defrauded students to rake in profits from taxpayer-funded federal student aid. Tens of thousands of students—many the first in their families to seek out higher education—were promised serious career training and job prospects, but left Corinthian’s campuses with little more than thousands of dollars in debt.

Turning to Courts for Loan Forgiveness | Inside Higher Ed

Earlier this year, Sarah Dieffenbacher closed the book on a two-year legal fight with the U.S. Department of Education over her student loan debt. But the resolution was unsatisfying to Dieffenbacher. Instead of getting a ruling on the loan-forgiveness claim she filed for debt racked up at the former Everest College, the department discharged her loans through bankruptcy court.

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Argosy University Closing Leaves Students Scrambling | Consumer Affairs

Another for-profit college has shut its doors, leaving many of its students with no degree and lots of debt. Argosy University, which operated brick-and-mortar campuses in Virginia, California, Illinois, Florida, Arizona, and other states had to turn out the lights after the U.S. Department of Education expelled it from the federal financial aid program.

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Defrauded Students Win Class Certification in Lawsuit Against DeVos | Courthouse News Service

More than 100,000 students defrauded by Corinthian Colleges can team up to sue Education Secretary Betsy DeVos for rolling back Obama-era rules that provided full debt forgiveness, a federal judge ruled Monday.

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Update | Delay. Delay. Delay. The Department of Education Appeals Preliminary Injunction Order and Moves to Stay Litigation Pending Appeal: What it Means and What Happens Next?

On May 25, 2018, a federal court in San Francisco granted former Corinthian borrowers’ motion for a preliminary injunction in Calvillo Manriquez v. DeVos, ordering the Department of Education to stop using its “average rulings rule” immediately, and to stop collecting the loans of certain Corinthian borrowers.

Court Tells Department of Ed to Stop Debt Collections for Defrauded Borrowers | Inside Higher Ed

A federal district court this week ordered the Trump administration to halt collections on loans held by former Corinthian Colleges students while it sorts out the legality of a system to provide partial debt relief to borrowers who were defrauded or misled by their institution.

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Judge Expands Order Blocking DeVos Partial Loan Forgiveness Policy | Politico

A federal judge in California is expanding the number of former Corinthian Colleges students who will receive a temporary reprieve on their federal student loans amid an ongoing legal challenge to the Trump administration’s loan discharge policies.

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Judge Rejects DeVos’s Interpretation of Order to Halt Partial Student Debt Relief Plan | The Washington Post

Tens of thousands of former Corinthian Colleges students can breathe a sigh of relief after a federal judge said late Tuesday that the U.S. Department of Education must stop all attempts to collect on their federal student loans. The decision clarifies the scope of the judge’s ruling in May banning the Education Department from using earnings data to grant partial student loan forgiveness to Corinthian students and halting collection on their federal debts.

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Update | Injunction Against Department of Education: What it Means and What Happens Next

On May 25, 2018, a federal court in San Francisco granted our motion for a preliminary injunction, ordering the Department of Education to stop using its “average rulings rule” immediately, and to stop collecting the loans of certain Corinthian borrowers.

Education Department ordered to halt loan collection from defrauded students | UPI

A federal judge in California ordered the Department of Education to stop collecting student loan debts from students who were defrauded by Corinthian Colleges. Magistrate Judge Sallie Kim of the U.S. District Court in San Francisco issued an order Tuesday to ban the Education Department from using earnings data to grant or deny partial student loan forgiveness to Corinthian students and block the collection of their federal debts.

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