News

Coverage

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.

Read More

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.

Read More

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.

Read More

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

A federal judge is weighing higher fines for the Education Department after the federal agency disclosed that it pursued scores of additional borrowers for debt collection — violating a court order.

Read More

Corinthian Colleges Students Want Education Dept. to Face Additional Sanctions for Violating a Court Order | Washington Post

Former Corinthian Colleges students are asking a federal judge to impose higher fines against the Education Department after the agency disclosed it pursued scores of additional borrowers for debt collection in violation of a court order.

Read More

Betsy DeVos: Income to Decide Education Loan Fraud Forgiveness | Ask the Truth

Overburdened by education loan is a common narrative associated with almost every other student in the US, but what seems tough, is about to get tougher. As per the new plan unveiled by the US Education Department, students who are cheated by their colleges will receive full loan forgiveness, only if they end up earning far less than their peers.

Read More

Betsy DeVos Forced Students Defrauded by For-Profit Colleges to Repay Loans | Truthout

Education Secretary Betsy DeVos overruled career staff at the department’s Borrower Defense Unit, deciding to force student borrowers to partially pay back their loans even though they had been defrauded by for-profit colleges, according to documents obtained by NPR.

Read More

Betsy DeVos Ignored her Own Staff, Forced Students Defrauded by For-Profit Colleges to Pay | Salon

Education Secretary Betsy DeVos overruled career staff at the department’s Borrower Defense Unit, deciding to force student borrowers to partially pay back their loans even though they had been defrauded by for-profit colleges, according to documents obtained by NPR.

Read More

Why Defrauded Students Still Can’t Get Debt Relief | The Takeaway

Tens of thousands of students across the country have been defrauded by for-profit colleges. On Wednesday, NPR reported on internal documents that show how career staffers at the Department of Education believed that students in these situations should have their debts forgiven, but that Education Secretary Betsy DeVos overruled them.

Read More

Betsy DeVos Says Students May Only Get Partial Loan Relief in Fraud Cases | Market Watch

Students who are cheated by their colleges will receive full loan forgiveness only if they end up earning far less than their peers, while others will receive relief between 25% and 75% of their debt under new rules unveiled Tuesday by the U.S. Education Department. The policy is a departure from the Obama administration, which provided full loan forgiveness in cases of fraud, and it marks the second time the Trump administration has attempted to provide only partial loan relief.

Read More