Student Borrowers Harmed by Dept. of Education’s Unlawful Partial Relief Scheme Drop Lawsuit After Dept. Abandons Policy | Press Release
Student borrowers in the class action lawsuit Pratt v. Cardona (previously Pratt v. DeVos) today moved to voluntarily dismiss the lawsuit, after the U.S. Department of Education agreed in March 2021 to end the previous administration’s unlawful partial relief policy for adjudicating borrower defense applications. T
Congress Urged To Stop Propping Up Fraudulent For-Profit Colleges With Federal Pell Grants | Press Release
As part of President Biden’s Build Back Better framework, Democrats in Congress have proposed restricting for-profit colleges from receiving federal funds in the form of Pell Grant awards, a student aid program for those with significant financial need. “Congress should no longer prop this fraudulent industry up with taxpayer funds…that are supposed to help the lowest income students.”
ADVISORY: Hearing Scheduled for Wednesday on Deposition of Former Education Secretary Betsy DeVos
Student borrowers on Wednesday will argue in a federal appeals court hearing that a subpoena to depose former Education Secretary Betsy DeVos in the class action lawsuit Sweet v. Cardona (formerly Sweet v. DeVos) must proceed.
Advocates and Borrowers Raise Significant Concerns as ED Declines to Name For-Profit College Borrowers to Rulemaking Committee on Borrower Defense | Press Release
The Project on Predatory Student Lending today raised significant concerns that the U.S. Department of Education has failed to select any former for-profit college borrowers for its negotiated rulemaking committee, including rejecting a nominee with the support of more than 1,200 former for-profit college students – the very people who have been most significantly harmed by the broken borrower defense process.
7,200 Borrowers Cheated by Corinthian Colleges to Finally Secure Debt Relief as Education Department Drops Legal Appeal | Press Release
Former for-profit college students today secured a long-awaited victory as the U.S. Department of Education filed a motion dropping its appeal in Vara v. Cardona (formerly Vara v. DeVos) and will comply with a federal court order to grant the Massachusetts Attorney General’s borrower defense application on behalf of 7,200 borrowers who attended Massachusetts Everest schools, which were part of the Corinthian Colleges chain. The decision sets the precedent that group borrower defense applications filed by state attorneys general on behalf of defrauded borrowers are valid and must be decided by the Department.
“We are calling on the Department to do what is right when it sees evidence of widespread fraud” – Statement on Approval Of Additional Student Borrower Defense Claims
Department of Education announced that it will approve borrower defense applications for a select 1,800 student borrowers who attended the predatory for-profit colleges of Westwood, Marinello, and the Court Reporting Institute. It will cancel all outstanding loan balances for these individuals, wiping out approximately $55.5 million in predatory student loan debt.
Updated Complaint: Education Department Officials Secretly Rigged Process to Deny Borrower Defense Applications for Debt Relief | Press Release
New evidence unveiled in lawsuit Sweet v. Cardona shows a sham process set up to deny defrauded borrowers debt relief regardless of the merits of their application.
Statement on Education Department Rescinding Partial Relief Policy | Press Release
Today, the Department of Education rescinded its second partial relief policy. Its first was enjoined by a federal court in Calvillo Manriquez v. DeVos. This second policy has been challenged in Pratt v. DeVos. This policy was layered on top of the harmful 2019 borrower defense rules, and its repeal does not affect those rules.
Student Borrowers Ask Court to Allow Deposition of Betsy DeVos on Borrower Defense | Press Release
Student borrowers today moved to depose former Education Secretary Betsy DeVos in the class action lawsuit Sweet v. DeVos. The borrowers want DeVos to explain the reasoning for delays in processing the borrower defense claims.
Judge Orders That Department of Education Cannot Resume Issuing Borrower Defense Denials Without Notifying Court and Borrowers | Press Release
A federal judge has ordered Education Secretary Betsy DeVos and the U.S Department of Education to notify the court two weeks before it denies any more borrower defense claims from student loan borrowers cheated by their school.