Dept. of Education to Cancel $150 Million in Student Loan Debt | NBC News
The U.S. Department of Education announced Thursday it would automatically cancel $150 million in student loans connected to for-profit colleges that closed in recent years. The move was made under an Obama-era policy that a federal judge in October essentially forced U.S. Secretary of Education Betsy DeVos to implement. The story was first reported by Politico.
Education Dept. Will Cancel $150 Million in Student Debt After Judge’s Order | New York Times
The Education Department is wiping $150 million in federal student loans off the books, and has begun the process of informing thousands of borrowers that they no longer owe the government money because the schools they attended shut their doors. The loan forgiveness, announced this week, applies to about 15,000 borrowers as federal education officials begin to carry out new rules that they fought in court for more than a year before giving up in October.
Education Department to Cancel $150M of Debt for Borrowers at Closed Schools | Politico Pro
The Education Department plans to expunge the federal student loans owed by thousands of borrowers whose education was interrupted by the closure of their college, carrying out an Obama-era policy that Education Secretary Betsy DeVos had fought to stop. Department officials said Thursday that they will cancel the loans of about 15,000 borrowers who qualified for “closed school” loan discharges but who haven’t yet applied for that benefit. Those student loans total approximately $150 million.
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.
What Defrauded Student Loan Borrowers Need to Know | U.S. News & World Report
Defrauded student loan borrowers will see some relief, thanks to an Obama-era rule a federal judge ordered immediately implemented Tuesday. The 2016 borrower defense rule outlines a way for student borrowers to apply for loan forgiveness if they were defrauded or misled by their college.
Betsy DeVos Loses Major Battle Over Obama’s Student Loan Protections | Salon
Donald Trump’s education secretary, Betsy DeVos, just lost a major court battle over consumer protections for Americans who take out student loans. U.S. District Judge Randolph Moss decided against the request from a group representing for-profit colleges to end regulations that help defrauded students receive federal loan forgiveness and forbid colleges from requiring students to go to arbitration to resolve complaints instead of taking matters to court, according to Politico.
Student Vets Win Too as Court Unchains Obama Loan Protection | Stars and Stripes
Hundreds, perhaps thousands, of student veterans, despite having robust GI Bill education benefits, contend they were deceived into racking up federal loan debt through abusive practices of certain for-profit colleges. On Tuesday these students, along with thousands of non-veterans, gained an easier path to loan forgiveness from a federal court ruling in Washington, D.C.
Borrowers Win vs. Predators | Boston Herald
Student borrowers prevailed yesterday when a judge refused a request from Betsy DeVos and the Department of Education to block the borrower defense rule, which aims to protect borrowers from predatory colleges and universities.
Defrauded by a For-Profit College? A New Court Ruling May Help you Cancel Out Your Loan Debt | Market Place
At least one class of borrowers carrying the ever-growing burden of student debt could possibly find some relief coming by way of a court ruling made earlier this week. The ruling was tied to the fates of institutions like the for-profit ITT Tech, which went bankrupt in 2016 amid allegations of deceptive practices, leaving tens of thousands of students stranded with federal loans. They could get those discharged, but they first needed to know the option was available and then how to apply for it, said attorney Julie Murray.
Judge Orders Betsy DeVos To Begin Student Loan Forgiveness | Forbes
A federal judge ordered Tuesday that the U.S. Department of Education, led by Betsy DeVos, must implement immediately an Obama-era student loan forgiveness rule. Attorneys general from 19 states, plus the District of Columbia, sued U.S. Secretary of Education Betsy DeVos and the U.S. Department of Education for delaying a borrower protection rule that was scheduled to take effect beginning July 1.