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Education Department Must Stop Funding For-Profit Colleges That Force Students to Arbitrate

Following a Friday court decision upholding U.S. Department of Education rules intended to stop schools from forcing defrauded students into secretive out-of-court arbitrations, lawyers representing for-profit college students are urging the department to follow that rule and cut off funding of for-profit colleges that violate it.

New Data Reveals DeVos Illegally Collected From Additional 17,258 Corinthian Students | Press Release

U.S. Secretary of Education Betsy DeVos revealed that an additional 17,258 student borrowers were illegally collected upon by her Department in direct violation of a court order, more than quadruple the number she had previously disclosed in October.

DeVos Held In Contempt For Illegal Collection of Student Debts | Press Release

U.S. Secretary of Education Betsy DeVos has been held in civil contempt and sanctioned for her illegal collection of student loan debts, a federal judge ruled today.

UPDATE: Judge “extremely disturbed” by DeVos’ illegal court violation “16,000 times” | Press Release

At today’s hearing, Judge Sallie Kim lifted the stay in the class action lawsuit on behalf Corinthian College borrowers and promised to rule on whether the U.S. Department of Education and Secretary Betsy DeVos will be held in contempt and face sanctions.

Project Vows to Challenge DeVos Over Devastating New Borrower Defense Rule that Will Gut Protections for Students | Press Release

“Betsy DeVos is throwing hundreds of thousands of students who have been defrauded by abusive for-profit colleges under the bus.”

Project Praises Warren, Clyburn Student Debt Bill, Urges Immediate Action to Cancel Debts Of For-Profit College Students | Press Release

“Student loan debt is one of the biggest challenges our country faces, threatening to hold back an entire generation. Today’s bill is a bold step to solve the unsustainable debt-financed higher education system and help the millions of students left in its wake.”

NEW DATA: 96% of Students Defrauded by For-Profit Colleges Report their Lives are Worse Now than Before they Went to School | Press Release

Nearly 900 Former For-Profit College Students Submitted Testimony Explaining the Harsh Impact of Federal Student Loan Debt on their Lives.

Judge Declares Department of Education’s Seizure of Corinthian Colleges Borrowers’ Tax Refunds Illegal | Press Release

A federal judge ruled that the Department of Education illegally took the tax refunds of two former Corinthian College students to pay their student loans, without addressing the assertion that these loans are fraudulent and unenforceable. Now, the Department may not take their tax refunds unless and until it makes a reasoned decision about the assertions of fraud.

Judge Rebukes Department of Education For Second Time, Ordering It To Stop Collecting on Corinthian Student Loans | Press Release

A federal judge today, for the second time in just a few weeks, rebuked the Department of Education for its wrongful and illegal continued attempts to collect on the debt of students who were defrauded by the for profit Corinthian Colleges, ruling that the Department must stop collecting on the loans of tens of thousands of Corinthian students in light of the Department’s use of an illegal rule to reduce relief to borrowers by 80 percent.

Two Key Hearings Scheduled for Next Week in Corinthian and ITT Cases | Press Release

Two court hearings are scheduled for next week in key cases that assert the rights of federal student loan borrowers who were cheated by the for-profit colleges Corinthian and ITT Tech. The hearing in San Francisco on Monday, June 11 involves the Department of Education’s continued refusal to grant complete loan cancellation to former students of for-profit Corinthian Colleges.