January 21, 2018

States sue DeVos for delaying student loan protections

07 July 2017, 12:56 | Kara Nash

Enlarge this image

Enlarge this image

Education Secretary Betsy DeVos should not delay fraud protections for student loan borrowers, a lawsuit filed Thursday against the Department of Education by 18 states and the District of Columbia argues.

Massachusetts Attorney General Maura Healey, who is leading the suit, said in a statement that DeVos had "sided with for-profit school executives against students".

The lawsuit was filed Thursday in federal court in Washington and demands implementation of borrower defense to repayment rules. The rule was finalized by the Obama administration in November 2016 after almost two years of negotiations, following the collapse of Corinthian Colleges, a national for-profit chain.

The so-called Borrower Defense Rule, completed by the Obama administration after years of work, entitled student loan borrowers to pursue loan forgiveness from schools found to have defrauded them. During her few months in office, DeVos has rolled back Obama-era efforts to require loan firms to help student debtors manage or discharge their loans rather than maximize the amount they pay; reversed another provision that limited loan companies from charging certain fees; and delayed rules meant to deter college misconduct and cut off federal money to colleges that bury students under unaffordable debt.

A spokeswoman for DeVos told media the secretary would not immediately comment.

The rule would have clarified the federal loan forgiveness process for students who were defrauded or misled by their colleges.

Kanye West quits Jay-Z's Tidal after spat over money
According to TMZ , Tidal claims that it hadn't received the music videos from Kanye , which is why it didn't pay him. Tidal gave those consumers free streaming access until a download became available some months afterward.

In enacting the borrower defense rule past year, the Obama administration reviewed over 10,000 comments from students, school officials and consumer advocates, and gave schools more than six months to prepare for the implementation. "The result is a muddled process that's unfair to students and schools, and puts taxpayers on the hook for significant costs".

The worst-performing programs cited by the Department of Education - those that consistently leave their graduates with more debt than they can repay - are required to show evidence of improvement or lose eligibility for federal funding. This is important because these clauses prevent students from suing the school in court and from joining their complaints together in class actions. Bernie Sanders of Vermont, sent a letter to DeVos opposing the delay, saying the department had never used litigation as a reason to delay rules.

Implementation of the rules, known as "borrower defense", was delayed in May by the Trump administration.

"Secretary Betsy DeVos has effectively revoked students' rights under the rule while giving a pass to predatory schools that wield influence with this administration", Julie Murray, a Public Citizen attorney representing the plaintiffs, said in a statement.

Becerra and seven other state attorneys general, along with the District of Columbia, filed a motion to intervene in that suit, saying they wanted to make sure the regulations were adequately defended. The regulation would have cut off federal funding to career programs that consistently left students with more debt than they could afford.

Other News

Trending Now

Trumps supports repeal now, replace later option
But McConnell showed no interest in that strategy. "It doesn't have the votes, and it's a waste of valuable time to discuss it". McConnell postponed a vote on an initial version Tuesday because of opposition from conservatives and moderates alike.

Multiple Nasdaq stocks including Apple, Microsoft, Amazon see prices changed to $123.47
Earlier on Twitter, Nasdaq posted it is "working with third-party vendors to resolve the matter as quickly as possible". In 2013, the exchange halted all trading in its listed stocks for about three hours because of a fault with the feed.

Homeland Security Department ends laptop ban for Abu Dhabi airline
The U.S. and Europe spent weeks negotiating whether to restrict large electronics on all flights bound for the U.S. Etihad is the only airline that operates direct flights from Abu Dhabi to the United States.

Mainland China Launches Bond Trading Link with Hong Kong
China's $9trn (£6.9trn, €7.9trn) bond market is the third-largest in the world but only 2% of mainland bonds are foreign owned. BNP Paribas said it had received approval as a market maker and had also executed its first trade under the scheme.

Illinois House "Special Session" coverage canceled on Wednesday
The override, which took place on Independence Day, may help to end a budget deadlock that has plagued IL for two years. The Capitol's air conditioning system was shut off and a team in hazmat suits entered the building.

USA soldier killed, two wounded in Afghanistan's Helmand province
A USA military spokesman in Kabul tells NPR's Tom Bowman that munitions hit a building while the group was inside it. Defense Secretary James Mattis has promised to deliver Congress a new strategy for the 16-year-old war by mid-July.

Samsung's Pyeongtaek chip complex starts production
In the proposed 37 trillion won, Samsung vowed a 30 trillion won investment for expanding semiconductor facilities. South Korea's economy could also benefit if Samsung Displays builds a new OLED manufacturing site in Asan by 2018.

Lindsay Lohan Defends Trump: "Stop Bullying Him"
Investigators looking into possible Russian Federation collusion with pro-Trump websites: "report MORE fan". I do think his Twitter needs to be taken away or deleted.

Song Joong-ki, Song Hye-kyo's love story
This is Blossom Entertainment and United Artists Agency. "Also, we ask for your understanding as we convey this surprising news". Their agencies, UAA and Blossom Entertainment, announced the news by issuing a joint press release, according to Yonhap News.

France's Macron to cut MPs by a third
He faces preliminary charges of planning an individual terrorist attack, the Paris prosecutor's office confirmed on Monday. On Monday, Macron said he would lift the state of emergency imposed upon the country since November 2015 later this year.