Swordsmyth
12-15-2018, 04:04 PM
The Education Department said Thursday it will cancel $150 million in federal student loan debt (https://ifap.ed.gov/eannouncements/121318ClosedSchoolDischargeChanges.html), despite Secretary Betsy DeVos' efforts to overhaul the Obama-era policy.
DeVos proposed restricting "borrower defense" claims (https://www.usatoday.com/story/money/2018/07/25/student-loan-borrowers-could-face-tougher-federal-rule-debt-forgiveness/833440002/) filed by former students whose schools closed or made false promises, but has to carry out regulations after court rulings sided with students.
Three months ago, a federal judge ruled that DeVos' attempts to kill the 2016 regulations were illegal, Politico reported. The judge also rejected for-profit colleges' bid to stop the policy in October.
The department said Thursday it will forgive loans for about 15,000 borrowers (https://ifap.ed.gov/eannouncements/121318ClosedSchoolDischargeChanges.html) whose schools closed, preventing them from finishing their programs. About half of those borrowers attended Corinthian Colleges, a for-profit educational chain (https://www.usatoday.com/story/money/2018/05/27/corinthian-students-get-partial-student-loan-win-court-fight/647782002/) that closed its campuses in 2015. They will account for $80 million of the automatically discharged loans, while borrowers whose schools closed between Nov. 1, 2013, and Dec. 4, 2018, will account for the other $70 million.
More at: https://news.yahoo.com/devos-cancel-150-million-student-023626432.html
DeVos proposed restricting "borrower defense" claims (https://www.usatoday.com/story/money/2018/07/25/student-loan-borrowers-could-face-tougher-federal-rule-debt-forgiveness/833440002/) filed by former students whose schools closed or made false promises, but has to carry out regulations after court rulings sided with students.
Three months ago, a federal judge ruled that DeVos' attempts to kill the 2016 regulations were illegal, Politico reported. The judge also rejected for-profit colleges' bid to stop the policy in October.
The department said Thursday it will forgive loans for about 15,000 borrowers (https://ifap.ed.gov/eannouncements/121318ClosedSchoolDischargeChanges.html) whose schools closed, preventing them from finishing their programs. About half of those borrowers attended Corinthian Colleges, a for-profit educational chain (https://www.usatoday.com/story/money/2018/05/27/corinthian-students-get-partial-student-loan-win-court-fight/647782002/) that closed its campuses in 2015. They will account for $80 million of the automatically discharged loans, while borrowers whose schools closed between Nov. 1, 2013, and Dec. 4, 2018, will account for the other $70 million.
More at: https://news.yahoo.com/devos-cancel-150-million-student-023626432.html