News

Coverage

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.

Read More

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.

Read More

Borrowers Face Hazy Path as Program to Forgive Student Loans Stalls Under Betsy DeVos | New York Times

The students attended institutions with pragmatic names like the Minnesota School of Business and others whose branding evoked ivy-draped buildings and leafy quads, like Corinthian Colleges. Tens of thousands of them say they are alike in one respect: They were victims of fraud, left with useless degrees and crushing debts.

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

Feds Must Stop Collecting Debts of Students Who Say They Were Scammed by Schools | MarketWatch

Betsy DeVos’s Department of Education must stop collecting the federal student debt of some borrowers who say they were ripped off by a now-defunct for-profit college, at least for now. That’s according to an order issued Tuesday by Sallie Kim, a judge in the Federal District Court in San Francisco. It applies to students who attended certain Corinthian College programs beginning as far back as 2010 if they’ve applied for relief from their federal loans and only had them partially forgiven.

Read More

Education Department ordered to stop collecting debts from defrauded Corinthian College students | The Hill

A federal judge in California has ordered the Department of Education to stop collecting debts from all students defrauded by the for-profit Corinthian College, which shut down in 2015. The court ruled in May that the Department of Education had violated privacy laws by using Social Security Administration information to help it determine how much relief defrauded Corinthian students should get based on their earning capacity.

Read More