Betsy DeVos Just Lost Student Loan Lawsuit on Obama Administration Era Borrower Defence

3 years ago



As reported by Bloomberg, Betsy DeVos, who is currently the U.S. Secretary of Education “lost a lawsuit brought by 19 states and the District of Columbia.” Allegedly, Ms. DeVos and her department were accused of “wrongly delaying implementation of Obama-era regulations” failing to protect student loan payers from “predatory practices.” Previously, the Typical Student team told you how Trump Administration Rescinds Obama Era Policies Yet Again


Obama-Era Policies Meant to Protect Student Loan Payers

September 12, the federal court in Washington ruled the “department’s postponement of the Borrower Defense rule was procedurally improper.” The Borrower Defence rule dates back to the Obama-era policies. It was created at the time when for-profit colleges lured students into thinking the diplomas would let them get jobs in any chosen sphere. 

betsy-devos-loses-lawsuit-02However, in reality, the credentials and certifications weren’t accepted by many employers, which left graduates with a massive amount of student loan debt they had to pay off. What made it even worse, US Department of Education deprived the loan payers "of several concrete benefits that they would have otherwise accrued." So, the judge ruled that the "immediate implementation of the Borrower Defense regulations would restore those benefits."

The US Department of Education didn’t comment on the judge ruling so far.

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