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2019: A Year of Student Victories And Holding Betsy DeVos Accountable | Update

Press Releases
Project on Predatory Student Lending

DeVos Held In Contempt For Illegal Collection of Student Debts | 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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UPDATE: Judge Grants Class Certification to 200,000 Student Borrowers in Sweet v. DeVos | Blog

A judge certified the class of more than 200,000 borrowers in Sweet v. DeVos, a case that seeks to force the Department of Education to process their borrower defense applications.

Scott Calls on DeVos to Testify About Stalled ‘Borrower Defense’ Claims after Judge’s Contempt Finding | Politico Pro

The chairman of the House education committee wants Education Secretary Betsy DeVos to testify about pending loan forgiveness claims by former Corinthian Colleges students after a federal judge last week held her in contempt and imposed a $100,000 fine for improperly collecting some of those loans.

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Backlog of student loan fraud claims tops 210K, with processing stalled | Politico Pro

The number of federal student loan borrowers who are waiting for the Education Department to make a decision on their application for loan forgiveness based on alleged fraud by their college now exceeds 200,000 borrowers, according to new federal data released today.

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My Student Loan Truth: Lyndsie’s Art Institute Story | Blog

Lyndsie attended the Art Institute of California, where she was pressured into signing up for a design program and significant student loans. She soon realized that the school was a “joke” and her degree was worthless.

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.

Defrauded by Colleges, Students Wait in Vain for Federal Help | Austin Statesman

In 2013, Morgan Marler decided she wanted a career in computers. At the time, the now-29-year-old was living in Arlington and looking for a job that would pay well and give her a purpose. She enrolled in ITT Technical Institute, one of the nation’s largest for-profit schools. It had been in business for 50 years and had eight campuses in Texas, a fact that reassured Marler. Counselors told her she could expect to make $60,000 with a degree in network system administration.

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