Secretary of Education, Betsy DeVos, was Sued Tuesday for Allegedly Failing to Cancel Student Debt for People whose For-Profit Colleges have Shut Down.
Last month a Court Ruled that the Obama-era Debt Regulations had to be Implemented after over a Year of Delays by DeVos. DeVos Released a Statement in October saying that the Department would No Longer be Seeking to Delay the Rule.
However, Housing and Economic Rights Advocates (HERA), a California Legal Service Group, has Filed a Lawsuit Alleging that the Education Department is still Collecting Loans that it should have Discharged.
The President, Aaron Ament, of the National Student Legal Defense Network, a Group Helping Represent HERA, said in a Statement released Tuesday that Delays are Hurting Thousands of Students.
"Under current leadership, the Department of Education seems determined to deny student borrowers the financial relief to which they are entitled," "It has been nearly two years since these rules should have taken effect, and Secretary DeVos is still dragging her feet and hurting tens of thousands of borrowers through her inaction. The students we are trying to help have been doubly victimized - first by the for-profit colleges that deceived them, and now by the federal government that refuses to help." said Ament.
The so-called Borrower Defense Rule would Require Schools to put up a Large Sum of Money each time a Lawsuit is Filed against it to protect Taxpayers, should the Institution Fail.
The U.S. Department of Education's proposed 2018 Borrower Defense Rules may make it Tougher for some Students to Discharge their Student Loans. If Implemented, the New Rules will Affect Student Loan Borrowers who Claim they were Defrauded by a College or University.
The Obama Administration first introduced the Current Borrower Defense Rules in 2016 after the Collapse of the For-Profit Corinthian Colleges Inc. The Obama-era Rules were intended to allow Borrowers to Petition the Department of Education for a Federal Student Loan Discharge if they could Prove their School Defrauded them under State Law.
But a Month before the Obama Rules were slated to take Effect in 2017, the Department Delayed their Implementation and Announced its Plans to Revise them.
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