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Judge Blasts DeVos’ Sweeping Denials of Student Loan Relief Claims as ‘Disturbingly Kafkaesque’ | Politico

A federal judge scrapped a settlement Tuesday over the Trump administration’s slow processing of loan forgiveness for borrowers who have accused their colleges of fraud, ruling that Education Secretary Betsy DeVos undermined the deal.

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Judge Slams DeVos For Blanket Denials Of Student Loan Forgiveness, Cites “Irreparable Harm” To Borrowers | Forbes

A federal judge issued a scathing rebuke to Education Secretary Betsy DeVos for issuing mass denials of student loan forgiveness applications. “The Secretary’s new perfunctory denial notices… contradict her original justification for delay, raise substantial questions under [federal law], and may impose irreparable harm upon the class of student-loan borrowers,” Judge William Alsup, of the U.S. District Court in the Northern District of California, wrote in his decision yesterday.

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Defrauded Students Slam DOE’s Loan Relief ‘Blanket Denial’ | Law360

Student loan borrowers defrauded by “predatory” for-profit colleges and seeking relief from crippling debt delivered heartfelt pleas to a California federal judge during a settlement fairness hearing Thursday, seeking assurance that a U.S. Department of Education deal with 170,000 borrowers ends its “smothering blanket denial” of long-awaited loan forgiveness requests.

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35,000 Former ITT Tech Students Could See $330 Million in Private Loans Erased with New Settlement | Yahoo Finance

A new settlement related to the now-defunct for-profit school ITT Technical Institute would erase $330 million in privately-held student loan debt owed by around 35,000 former ITT students.

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Lawsuit Against Student Loan Giant Navient Will Test Limits of Private Debt Discharge | Yahoo Finance

A former student at the now-defunct ITT Technical Institute and his mother are suing student loan giant Navient (NAVI) over the company’s refusal to cancel his private student loans despite the U.S. government erasing thousands of federal student loans related to the notorious for-profit school. The case could set a precedent for defrauded borrowers seeking relief from privately-held loans (as opposed to federally-backed loans).

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Scammed Student Sues Navient, Asking for Cancellation of Debt he Took on to Attend For-Profit College | MarketWatch

For roughly a decade, Jorge Villalba has been contending with student debt that he believes — and the government has confirmed — he was illegally misled into borrowing. Villalba, 39, attended ITT Technical Institutes, a major for-profit college chain, from 2006 to 2010. Just six years after he graduated, ITT filed for bankruptcy, amid allegations the school used misleading job placement and graduation rates to convince students to sign up for classes and take on the loans that would pay for them.

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Former ITT Student Sues Navient For Student Loan Forgiveness | Forbes

Today, a new lawsuit was filed against Navient, the student loan servicer formerly known as Sallie Mae. The suit was filed by the Project on Predatory Student Lending at Harvard Law School on behalf of Jorge and Alicia Villalba.

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Trump Administration’s Handling of Stalled Student Debt Relief Claims Threatens Proposed Settlement | Washington Post

A proposed court settlement between the Trump administration and defrauded borrowers is in jeopardy after the administration revealed its widespread denials of requests for student debt cancellation. Ninety-four percent of the debt relief claims the Education Department has processed since reaching the agreement in April have been rejected, the department said in a court filing last week. The federal agency issued 78,400 decisions, of which 4,400 were approved and the remainder denied.

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“Attacking the Concept of Debt” | Harvard Magazine

Only a few years ago, Douglas Jones, who worked night shifts as a security guard at a nursing home in Roxbury, was hesitant to spend even $10 more than his typical budget allowed. Payments on his student loan debt were being withdrawn directly from his bank account. If the balance was short—for instance, if Jones hadn’t managed to get 40 hours at his job that week—the bank charged an overdraft fee. The debt had ruined his credit score and he hadn’t had a credit card in years. “They were even taking money I didn’t have,” Jones says. “It was stressing me the hell out.” Along with millions of other Americans, Jones had fallen prey to the for-profit college industry, which is in essence a two-pronged system—federal loans at one end and for-profit schools designed to access those loans at the other.

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Defrauded Student Loan Borrowers Win, but Still Lose | New York Times

Education Secretary Betsy DeVos is denying huge batches of relief requests from students whose schools defrauded them. Even those who aren’t denied are getting very little — or sometimes nothing.

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