DeVos’ Settlement With For-Profit College Borrowers Rejected

Oct. 20, 2020, 9:08 PM

A California federal judge rejected a settlement Tuesday that would have given the Department of Education an 18-month deadline to answer loan forgiveness applications by 160,000 students who say their for-profit colleges misled them to get them to enroll.

Education Secretary Betsy DeVos and the borrowers, who said schools like Corinthian Colleges and DeVry University fooled them with inflated employment statistics and engaged in other misconduct, previously received preliminary approval for their settlement.

But after concluding that the parties didn’t have a “meeting of the minds” on critical terms of the settlement, Judge William Alsup denied final approval, resurrected the ...

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