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By Rob Shimshock
Washington, D.C., in conjunction with 18 states, filed a lawsuit Thursday against Education Secretary Betsy DeVos regarding the secretary’s suspension of student loan protections.
The involved attorney generals are suing DeVos over the secretary’s mid-June freezing of student recovery of federal loan debt at colleges that committed fraud, according to The New York Times. DeVos pledged to rewrite the rules, calling them “a muddled process that’s unfair to students and schools,” according to KCCI.
The rules would have made it easier for students to sue schools for fraud and compel schools risking closure to provide financial collateral instead of letting taxpayers foot potential bills, The New York Times reported.
“Since day one, Secretary DeVos has sided with for-profit school executives against students and families drowning in unaffordable student loans,” said Massachusetts Attorney General Maura Healey. “Her decision to cancel vital protections for students and taxpayers is a betrayal of her office’s responsibility and a violation of federal law.”
Two student borrowers also sued the Department of Education Thursday because of the suspended implementation of the rules. The parent company of the school they attended, the New England Institute of Art, settled to pay $95 million after being accused of illegally compensating recruiters.
“Fraud, especially fraud committed by a school, is simply unacceptable,” DeVos said in a June statement. “Unfortunately, last year’s rule-making effort missed an opportunity to get it right. The result is a muddled process that’s unfair to students and schools, and puts taxpayers on the hook for significant costs.”
The Daily Caller News Foundation reached out to Healey and the Department of Education for comment, but received none in time for publication.