Education Department’s Student Loan Discharges Represent Only 6% of Unresolved Borrower Defense Claims | Press Release
Today, the U.S. Department of Education announced that it will cancel $415 million in federal student loans for approximately 16,000 borrowers, including former students of the for-profit colleges ITT Tech, Corinthian Colleges, DeVry University, Westwood College, Marinello Schools of Beauty, and Minnesota School of Business/Globe University. The Department described its findings as “instances in which students were misled into loans at institutions or programs that could not deliver what they’d promised.”
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.”
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Today, the Department of Education rescinded its second partial relief policy.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.
Students Challenge Education Department’s Latest Scheme to Deny Student-Loan Relief | Press Release
A Trump administration rule that denies loan relief to many students cheated by their schools is deeply flawed and should be overturned, Public Citizen and the Project on Predatory Student Lending told a court today. The groups represent student borrowers in a lawsuit challenging the U.S. Department of Education’s new “partial relief” rule.
Florida For-Profit Colleges Sued for Selling Predatory Product and Targeting Black Students | Press Release
A class action was filed against Florida-based for-profit college chain, Florida Career College (FCC), for selling a predatory product using false representations and high-pressure sales tactics that leave students in mountains of debt they cannot repay and systematically targeting Black students.
STATEMENT: “This hearing has made clear once again that Secretary DeVos won’t let the law get in the way of her agenda against students” | Press Release
Secretary DeVos made her point very clear in today’s hearing: she does not believe that cheated borrowers are legally entitled to relief.
Breaking: Secretary DeVos Denies Students’ Rights to Full Debt Cancellation | Press Release
Education Secretary Betsy DeVos announced that she will deny full student loan cancellation to student borrowers who were cheated by their colleges and applied to have their federal loans cancelled.
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.