Posts Tagged ‘Department of Education’

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.

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Biden Administration Drops Appeal of Legal Decision Granting former Corinthian Colleges Students Debt Relief | Washington Post

A group of 7,200 former students of the defunct for-profit chain Corinthian Colleges will have their federal student loans canceled after the Education Department agreed Thursday to drop its appeal of a court order to clear their debts. The decision arrives more than a year after a federal judge ruled that the students in Massachusetts were entitled to a full discharge of their loans under a statute known as borrower defense to repayment. The Trump administration fought the order and brought the case to a standstill, but borrowers were hopeful the Biden administration would concede.

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“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.

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Student Loan Borrowers Perplexed by Biden Administration’s Continued Defense of Trump-Era Lawsuits | Washington Post

Amanda Kulka expected her six-year fight for student loan cancellation would be over by now. Powerful allies, including a state attorney general and a federal judge, agreed that she and other students in Massachusetts had been defrauded by the defunct for-profit chain Corinthian Colleges. The courts even granted all 7,200 of them a full discharge of their debt in June, rebuking former education secretary Betsy DeVos’s attempt to block their request for relief.

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What the Latest Student Debt Announcement from The Department of Education Means for Defrauded Borrowers | Blog

On March 18, 2021, the Department announced full debt cancellation for borrowers with partial relief decisions on their borrower defense applications. More than 90% of borrower defense applicants are not affected by the Education Department’s partial relief announcement because their applications were denied or because they are still waiting for a decision. Here’s what that means.

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90% of Borrowers Who Claim They Were Scammed By Their Schools Were Denied Relief | MarketWatch

Students who attended colleges that have misled them have the right under the law to have their federal student loans discharged, but over the past few years, accessing that relief has been nearly impossible, despite evidence of malfeasance by their schools, new documents suggest. More than 200 borrowers who attended a school where an admissions representative pled guilty to making a false statement in an application for federal student aid had their applications for relief denied by the Department of Education, according to the documents.

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A DeVos System Allowed 12 Minutes to Decide Student Loan Forgiveness | New York Times

Former Education Secretary Betsy DeVos made no secret of her disdain for a program intended to forgive the federal student loans of borrowers who were ripped off by schools that defrauded their students. She called it a “free money” giveaway, let hundreds of thousands of claims languish for years, and slashed the amount of relief granted to some successful applicants to $0.

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A First Move on Borrower Defense | Inside Higher Ed

The Education Department announced yesterday that students who were cheated by for-profit institutions and previously granted partial relief on their direct federal loans will now be granted full relief. The department is rolling back a controversial formula — established under the previous secretary, Betsy DeVos — that gave some borrowers only partial debt forgiveness, even if it was found that they were defrauded or misled by their college.

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