Project on Predatory Student Lending
Statement on the COVID-19 Economic Stimulus Package and Student Loan Relief | Press Release
Project on Predatory Student Lending
Student Advocates Challenge DeVos’ Borrower Defense Rule | Press Release
The Washington Post
DeVos and Education Dept. could face new sanctions for violating a court order | The Washington Post
Student Loan Borrowers Sue Betsy DeVos – Again | Forbes
Student loan borrowers have filed yet another lawsuit against Education Secretary Betsy DeVos over the Borrower Defense to Repayment program. Borrower Defense to Repayment was established in 2016 by the Obama administration. The program was created in the wake of the collapse of major for-profit colleges to provide student loan forgiveness for borrowers who were defrauded by their schools.
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.
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.
STATEMENT: “This hearing has made clear once again that Secretary DeVos won’t let the law get in the way of her agenda against students” | Press Release
Secretary DeVos made her point very clear in today’s hearing: she does not believe that cheated borrowers are legally entitled to relief.
Breaking: Secretary DeVos Denies Students’ Rights to Full Debt Cancellation | Press Release
Education Secretary Betsy DeVos announced that she will deny full student loan cancellation to student borrowers who were cheated by their colleges and applied to have their federal loans cancelled.
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.
Trump’s Education Chief in Hot Seat Over Student-Debt Collection | Bloomberg
U.S. Secretary of Education Betsy DeVos faces potential sanctions or a finding she’s in contempt of court for continuing to collect on the debt of former students at bankrupt Corinthian Colleges Inc., going so far as seizing their tax refunds and wages.
DeVos Violated a Court Order to Stop Collecting on the Debts of Corinthian College Students. Now, They Want her Held in Contempt. | The Washington Post
Despite a court order barring the Education Department from collecting on the federal student loans of former Corinthian College students, the agency continued to pursue the debts. Some former students of the defunct for-profit college had their paychecks garnished. Others had their tax refunds seized by the federal government.