Judge Orders Betsy DeVos to Begin Student Loan Forgiveness

Students defrauded by for-profit colleges scored an important victory this week, when a court cleared the way for an Obama-era policy that will make it easier for them to get their student loans forgiven.
Education Secretary Betsy DeVos had said the regulation, known as borrower defense, made discharging loans too easy and was unfair to taxpayers. The rule was due to take effect in July 2017, but DeVos froze it while she worked on devising a new regulation.
But U.S. District Judge Randolph Moss ruled last month that DeVos’ delay was unlawful. On Tuesday, he denied a request by an organization representing for-profit colleges in California, to further postpone the rule, thus paving the way for borrower defense to enter into force.
“The rule is finally in effect. No more excuses. No more delays,” said Julie Murray, an attorney with Public Citizen, who is representing the defrauded students in their suit against DeVos.
Education Department spokeswoman Liz Hill said DeVos “respects the role of the court and accepts the court’s decision” and will soon provide information about how the regulation will be implemented.
But DeVos continues to regard the regulation as “bad policy” and will continue writing a new rule “that protects both borrowers and taxpayers,” Hill said in a statement Tuesday.
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