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Project on Predatory Student Lending

Students Challenge Education Department’s Latest Scheme to Deny Student-Loan Relief | Press Release

Press Releases
Project on Predatory Student Lending

Florida For-Profit Colleges Sued for Selling Predatory Product and Targeting Black Students | Press Release

Press Releases
Project on Predatory Student Lending

Student Borrower Class Forces Department of Education to Process All Pending Borrower Defense Claims | Press Release

Former For-Profit Students Intervene in Borrower-Defense Lawsuit | Inside Higher ED

Two former students of an Education Management Corporation-owned for-profit college have filed suit to intervene as defendants in a lawsuit challenging borrower-defense regulations. The Department of Education cited the lawsuit, which was brought by an association of California for-profit colleges, in announcing a delay of the borrower-defense rule this week.

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Betsy DeVos Is Halting Protections For For-Profit College Students | BuzzFeed

In federal filings, the Education Department said it would renegotiate the federal “gainful employment” rule, which stops government money from flowing to for-profit colleges whose students take on too much debt, but earn little after they graduate. Years in the making — it went into effect in 2015 after surviving two lengthy court battles with the for-profit college industry — the regulation is arguably the most significant piece of President Obama’s higher education legacy.

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Betsy DeVos Delays 2 Obama-Era Rules Designed to Protect Students from Predatory For-Profit Colleges | The Washington Post

The Trump administration is suspending two key rules from the Obama administration that were intended to protect students from predatory for-profit colleges, saying it will soon start the process to write its own regulations.

The move made Wednesday by Education Secretary Betsy DeVos was a victory for Republican lawmakers and for-profit colleges that had lobbied against the rules. Critics denounced it, accusing the administration of essentially selling out students to help for-profit colleges stay in business.

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U.S. Halts New Rules Aimed at Abuses by For-Profit Colleges | The New York Times

The Trump administration is formally reconsidering — and may dismantle — two new rules that were a cornerstone of the Obama administration’s crackdown on predatory for-profit colleges.

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Court Smacks Down Feds’ Attempt to Delay Ruling on Student Debt Relief for Single Mom | MarketWatch

A single mother of four whose wages are being garnished by the government over student loans she took out to attend a college that’s since been accused of fraud is entitled to a swift answer about whether her loans are eligible to be discharged, a federal court ruled Friday.

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Court Orders Education Department to End Delay in Ruling on Loan Discharge | Inside Higher Ed

A federal district court judge last week ordered the Department of Education to rule within 90 days on an application for loan relief by a former Corinthian Colleges student. The application has been pending for more than two years.

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Update | Court Orders Department of Education to Consider Student Loan Relief Application, Calling Request for Further Delay “Frivolous and in Bad Faith”

The United States District Court for the Central District of California issued an Order today that directs the Department of Education to rule on the loan relief application of a former Corinthian student that has been pending for over two years.  To date, the Department of Education has not ruled on thousands of applications for loan relief submitted by borrowers whose federal student loans were originated by private banks under the Federal Family Education Loan Program.

18 States Sue Betsy DeVos Over Student Loan Protections | The New York Times

Democratic attorneys general from 18 states and the District of Columbia filed a lawsuit on Thursday against the Education Department and its secretary, Betsy DeVos, challenging the department’s move last month to freeze new rules for erasing the federal loan debt of student borrowers who were cheated by colleges that acted fraudulently.

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Fighting Back Against For-Profit Universities | Boston Globe

When Stephano Del Rose enrolled in the New England Institute of Art in Brookline, he had bold dreams of a future in Web design and filmmaking. Lured by promises of cutting-edge digital equipment, internships, and industry connections, Del Rose, now 25, quickly signed on. But his enrollment contract instead led to a world of broken promises, heavy debt, and limited legal options.

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Update | ITT Trustee to Stop Collection on All “Temporary Credit” Accounts

On May 18, the court overseeing ITT’s bankruptcy case approved a motion to stop collection on all ITT “Temporary Credits.” ITT used unfair and deceptive tactics to get students to sign up for Temporary Credits, including by describing Temporary Credits as grants and threatening to expel students if they did not agree to the debt. Even after ITT filed for bankruptcy, its servicers and debt collectors continued to harass students to collect these Temporary Credits.