Betsy DeVos Illegally Delayed Loan Forgiveness
Attorney Generals from nineteen states plus the District of Columbia sued U.S. Secretary of Education Betsy DeVos and the U.S. Department of Education for failing to implement a borrower protection rule.
During President Obama’s administration, the borrower defense rule made it easier for students to receive student loan forgiveness if they were defrauded.
By failing to implement the rules, the Attorney Generals argued that DeVos violated the Administrative Procedures Act as there was no legal reason to delay the implementing of the rule.
The court ruled that the U.S. Department of Education’s procedure was “arbitrary and capricious.”
The Borrower Defense to Repaying rule allows students to have their federal student loans forgiven if a for private college or university used illegal or deceptive practices in order to have students apply for student loans.
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