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Project on Predatory Student Lending

Student Borrower Class Forces Department of Education to Process All Pending Borrower Defense Claims | Press Release

Press Releases
Project on Predatory Student Lending

Statement on the COVID-19 Economic Stimulus Package and Student Loan Relief | Press Release

Coverage
The Washington Post

DeVos and Education Dept. could face new sanctions for violating a court order | The Washington Post

Student Advocates Announce Closed School Discharges for Over 30,000 Student Borrowers | Press Release

Student Defense and the Project on Predatory Student Lending issued statements today responding to the U.S. Department of Education’s confirmation that it had discharged loans for over 30,000 student borrowers under the automatic closed school discharge provision of the 2016 borrower defense rule. The discharges include roughly $95.1 million in relief for approximately 7,700 former students of the predatory for-profit college, ITT Tech.

Former Students of Defunct ITT Tech Receive $95.1 Million Loan Relief | Wall Street Journal

WASHINGTON—The Education Department is providing loan relief to some 7,800 former students of the ITT Technical Institute, with debts totaling $95.1 million being forgiven by the government years after the giant for-profit school chain closed. The department said that it has identified 7,878 former students of ITT Tech as eligible for a program in which loans are discharged automatically within three years of a school closure. Of those borrowers who attended the school, 7,697 had received loan forgiveness as of Jan. 3.

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Defrauded college students will no longer be taxed on their canceled loans | Washington Post

Student loan borrowers whose education debt has been canceled because their college closed or engaged in fraud will no longer face a tax bill, relief that arrives as applications for forgiveness continue to grow. On Wednesday, the Internal Revenue Service issued guidance shielding borrowers from having their discharged federal and private loans treated as taxable income. The measure is effective for education loans canceled on or after Jan. 1, 2016. Anyone affected by the new policy may claim a credit or refund for an overpayment of taxes.

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The Latest Reports on Betsy DeVos Scamming For-Profit College Students | Blog

ITT and Corinthian Borrowers Continue to Fight for Relief as the Department of Education Skirts the Law Every Step of the Way

Project on Predatory Student Lending Statement on Education Department’s Processing of Automatic Closed School Discharges For Former ITT Students | Press Release

The Project on Predatory Student Lending today issued the following statement after the U.S. Department of Education confirmed it has finally begun to process automatic closed school loan discharges for a select group of former students of the predatory for-profit college, ITT Tech.

Former for-profit college students will have $168 million in student debt cancelled | MarketWatch

More than 18,000 students who attended a now-defunct for-profit college will have $168 million in private loan debt discharged. The loan cancellation is part of a proposed deal between the Consumer Financial Protection Bureau, attorneys general of 43 states and the District of Columbia and Student CU Connect (or the CUSO), a company that held and managed private loans taken out by students at ITT Tech.

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ITT Trustee, CFPB, and States Settle with Private Lender to Eliminate Millions in Debt | Blog

Settlements Do More for Cheated ITT Students Than DeVos As Betsy DeVos and the Department of Education continue to sit idly, indifferent to massive fraud committed by ITT against more than 750,000 former students, the CFPB and a group of 44 states and the District of Columbia filed proposed settlements with one of ITT’s private…

Cancel Student Debt, Boost the Economy | Medium

In April, Senator Elizabeth Warren released a bold plan for free public college and debt cancellation. This transformational proposal takes direct aim at some of the deepest inequities in education in America, and it’s funded by her Ultra-Millionaire tax on wealth above 50 million. The plan includes a $50 billion minimum fund for historically Black colleges and universities (HBCUs) and minority-serving institutions, and will make public college tuition-free at both two- and four-year institutions.

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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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Update | ITT Bankruptcy Settlement Does More for Cheated Students Than DeVos

When the final order of the ITT bankruptcy settlement became effective this month, the court approved cancellation of every dollar of student debt held by the for-profit college and allowed the students’ $1.5 billion claim as unsecured creditors.