Class Action News

For-Profit Student Borrowers Sue DeVos Over Agency Inaction (1)

June 25, 2019, 4:58 PMUpdated: June 25, 2019, 6:27 PM

The Department of Education under the direction of Secretary Betsy DeVos has kept nearly 160,000 former for-profit college students seeking loan forgiveness “in limbo,” a class action complaint filed June 25 alleges.

The suit says the department has a “policy of inaction and obfuscation” toward their applications asserting the borrower defense, the suit says.

The Higher Education Act, department regulations, and students’ loan contracts allow students to cancel their federal student loans if their school engages in misconduct, which is known as the borrower defense.

“The department has not granted or denied a single application since June 2018, and it...

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