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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.

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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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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.

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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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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.

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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.

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Students Ask Judge to Hold DeVos in Contempt Over Debt Collection | The Hill

Students from the now-defunct Corinthian College have asked a federal judge to hold Education Secretary Betsy DeVos in contempt for pursuing their debts despite a court order prohibiting their collection, The Washington Post reported Friday.

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Corinthian Students Seek to Hold DeVos in Contempt for Violating Court Order to Halt Loan Collection | Politico Pro

Attorneys representing a group of former Corinthian Colleges students have asked a federal judge to hold the Education Department and Secretary Betsy DeVos in contempt for violating a court order to stop collecting on their federal student 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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