News
Department of Education to cancel $415 million in student loan debt | MarketWatch
Roughly 16,000 borrowers who were scammed by their schools will have their federal student loans discharged, resulting in $415 million in relief, the Department of Education announced Wednesday. The borrowers receiving relief attended four for-profit colleges that the agency found misled students in the process of luring them into enrolling and taking on debt to pay for school.
Feds Forgive Loans of Thousands More Defrauded Student Borrowers | US News and World Report
Nearly 16,000 federal student loan borrowers will receive $415 million in relief, according to an announcement Wednesday by the Education Department that provided new details of fraud by several for-profit schools, including those who attended DeVry University.
The Education Department will wipe out loans for students defrauded by DeVry University | The New York Times
The Education Department will cancel federal student loans for at least 1,800 students who attended DeVry University, once one of the nation’s largest for-profit college chains, because it fraudulently lured in applicants for years with vastly inflated claims about their career prospects.
DeVry University misled students. Now, the federal government is erasing their debt | NPR
Nearly 16,000 federal student loan borrowers who were misled by for-profit colleges will have $415 million in debts erased, according to the U.S. Department of Education. These borrowers — who attended DeVry University, ITT Technical Institute and other schools — will receive relief through a legal provision known as borrower defense, which promises loan relief for defrauded borrowers.
Biden Administration Approves $415 Million In New Student Loan Forgiveness Under Troubled Program: Key Details | Forbes
The U.S. Department of Education on Wednesday announced that it had approved $415 million in new student loan forgiveness for borrowers defrauded by their schools. “The Department remains committed to giving borrowers discharges when the evidence shows their college violated the law and standards,” said U.S. Secretary of Education Miguel Cardona in a statement. “Students count on their colleges to be truthful. Unfortunately, today’s findings show too many instances in which students were misled into loans at institutions or programs that could not deliver what they’d promised.”
For-Profit College CEO Said CFPB’s Chopra Should Be Abused At Guantanamo | Republic Report
On October 2, 2015, Kevin Modany, the CEO of ITT Educational Services, Inc., then one of the biggest for-profit college operations in the United States, sent an email to company lawyers about Rohit Chopra, an assistant director at the U.S. Consumer Financial Protection Bureau. “This guy,” Modany wrote, “should be sent to Guantanamo Bay for about a decade of R&R; which should include an aggressive regimen of ‘water sports’!”
Could student loan payments be frozen until 2023? ‘Anything is possible,’ experts say | Fortune Education
Payments on federal student loans have been on pause for nearly two years to give borrowers a financial break during the pandemic. After several extensions, though, borrowers will be on the hook to start making payments again in less than 100 days.
Navient Reaches a Deal to Cancel $1.7 Billion in Student Loan Debts | NPR
The loan servicing giant Navient has agreed to cancel $1.7 billion in student loan debts owed by roughly 66,000 borrowers, as part of a settlement announced Thursday with 39 state attorneys general. The settlement ends a years-long legal fight with states in which Navient faced two serious allegations.
Judge Critical of Biden Administration’s Progress on Student Debt Relief Claims | Washington Post
A federal judge is criticizing the Biden administration for not moving quickly enough to resolve claims from defrauded student loan borrowers who sued over Trump-era policies that denied them debt relief.
Biden Administration Goes to Bat for Betsy DeVos, Tries to Shield Her from Deposition in Students’ Class Action Lawsuit | Law and Crime
The Biden administration argued Wednesday that former Secretary of Education Betsy DeVos should not have to give deposition testimony in a class action suit over the Department of Education’s (DOE) mishandling of thousands of student loans.