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.
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.
The borrower defense rule is “supposed to be about cancelling debt and providing appropriate relief to people who have been cheated,” said Toby Merrill, the director of Harvard Law School’s Project on Predatory Student Lending, which is representing the students. The partial relief version of the rule that the Department of Education is currently using is “so clearly not designed for that,” Merrill said.
In the months and years following, thousands of students who attended Corinthian and other for-profit colleges sent in applications claiming they were lured into taking on debt by promises of job placement, credit transfer and other vows that never came to fruition. Congress passed bipartisan legislation earlier this year that would have required DeVos to implement an Obama-era version of the rule. President Donald Trump vetoed the legislation last month.
One plaintiff borrowed $25,000 after she was told her credits would transfer Sammia Pratt, one of the plaintiffs in the suit, borrowed over $25,000 to attend Florida Metropolitan University, a for-profit college that later became part of the Corinthian Colleges chain.
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