The Biden Administration’s DOJ Continues to Shield DeVos in Borrower Defense Proceeding | Press Release
Student borrowers in the lawsuit Sweet v. Cardona (formerly Sweet v. DeVos) on Monday filed a response to a court request asking whether the issue of deposing former Education Secretary Betsy DeVos should be reheard “en banc” in the Ninth Circuit Court of Appeals. If granted, a panel of judges in the Ninth Circuit would reconsider whether Plaintiffs will be allowed to depose former Secretary DeVos about her knowledge surrounding the Department of Education’s long-delayed borrower defense process.
Student Borrower Advocates Ask Education Department to Cancel 25+-Year-Old Debts from Closed For-Profit Colleges | Press Release
Student borrower advocates submitted a group closed school discharge request today to the U.S. Department of Education on behalf of all student borrowers, including their clients, who attended a for-profit school listed in the Department’s official closed school search file with a closure date prior to January 1, 1994. Due to the timing of their loans, these borrowers lack access to alternative borrower defense rights to cancel their loans.
Student Borrowers File New Brief in Lawsuit Regarding Borrower Defense Delays and Backlog | Press Release
Today, student borrowers submitted a new filing in the lawsuit Sweet v. Cardona regarding the U.S. Education Department’s ongoing delays in processing borrower defense claims. The filing follows Judge William Alsup’s request for a status update as to what is taking so long to resolve the claims. Several borrowers have written directly to Judge Alsup in recent months seeking answers.
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.”
New Report Details Massive Scale of Fraud and Abuse at Notorious For-Profit College ITT Tech | Press Release
The Project on Predatory Student Lending today released a new report detailing the massive scale of fraud and abuse by the defunct for-profit college ITT Tech. The report, “Dreams Destroyed: How ITT Technical Institute Defrauded a Generation of Students” was made public and sent today to Education Secretary Miguel Cardona. It presents the largest volume of evidence compiled on ITT, including thousands of ITT’s own internal records. The documents unequivocally show that ITT was not a legitimate educational institution: it systematically and brazenly lied to students in order to profit from their federal financial aid.
Statement on Extension of Student Loan Payment Pause
President Biden today announced a 90 day extension of the pause on federal student loan repayment, which will now continue through May 1, 2022, rather than ending on February 1, 2022. The announcement cites ongoing concerns with the pandemic and economic recovery.
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.