Posts Tagged ‘Partial Denial’

Students who’ve been scammed by their schools are being illegally cheated again — this time out of the loan cancellation that they’re entitled to, a new lawsuit alleges. A group of student-loan borrowers filed a class-action lawsuit Tuesday accusing Secretary of Education Betsy DeVos and her department of illegally limiting the amount of relief student-loan borrowers who were misled by their schools receive.

Student loan borrowers have filed a new lawsuit against Education Secretary Betsy DeVos. The lawsuit concerns the Borrower Defense to Repayment program. This loan forgiveness program was originally enacted by the Obama administration to provide student debt relief to students who were misled, defrauded, or otherwise harmed by predatory colleges and universities.

The Department of Education (ED) changed its rules on how students defrauded by for-profit colleges seek debt relief, leading to lawsuits and a political fight to return the rule to its Obama-era form and a veto from President Trump in support of the change. Now consumer advocates are suing over related, lesser known Trump administration student debt rule change in another attempt to obtain more relief for defrauded students.

Education Secretary Betsy DeVos is being sued again. This time for her new partial debt forgiveness policy under the “borrower defense to repayment” rule. DeVos announced the new policy last year, providing for a way for borrowers who were defrauded by their school to get only a portion of their loans cancelled.

Consumer groups are expected to file a federal lawsuit today challenging U.S. Education Secretary Betsy DeVos’s so-called partial relief rule, in which more students get only a part of their student debt forgiven if they have been defrauded by their institutions.

Consumer groups this morning are filing a new legal challenge to DeVos’ policy, announced last year, that will cancel only part of the loan debt owed by federal student loan borrowers who are defrauded by their college.