DeVos to Face 160,000-Person Class Action on Student Loans

Nearly 160,000 former for-profit college students seeking loan forgiveness may pursue their claims against the Department of Education and Secretary Betsy DeVos as a class, the Northern District of California held.

Over 210,000 borrower defense claims are currently pending and the department has failed to act on a single application since June 2018, Judge William Alsup of the U.S. District Court for the Northern District of California said.

The uniform policy of inaction affects all class members similarly, the court said.

It found the delay “especially striking” considering that the department decided 28,000 applications between July 2016 and January 2017. ...