The Department of Education denied 18,000 claims from students claiming wrongdoing by their school, including 7,000 claims filed by Corinthian College students. The DOE has yet to inform these students of the denial amid scrutiny against the Trump administration. This, even though courts ruled Corinthian College misled students and needed to relieve them of their student loan debt.
Besty DeVos Held in Contempt
As recent as October, Betsey Devos and the DOE were held in contempt of court and fined $100,000 for “violating an order to stop collecting on the student loans owed by students of a defunct for-profit college.”
A ten page memo that circulated in the department, prepared by Diane Auer Jones, outlined a new method the department wanted to take when handling cases like Corinthian College. The method would make it harder for defrauded students to seek loan relief. Despite concerns for the Trump administration to propose student loan relief plans as extensive as those of the Democratic 2020 candidates, the DOE actively blocks action that would allow borrowers to seek loan relief.
Existing Debt Relief Programs Have Been Halted
Programs already in place, such as the public loan forgiveness program, and the Obama-era act that grants relief to defrauded students, have been put to a screeching halt. A further 28,000 claims filed by defrauded students, such as students from ITT Tech, await decisions on their claims. Even disabled veterans who Trump promised relief, and Pence confirmed, are still awaiting notice that their student loan debt is removed.
An estimated 227,000 cases are pending a decision for whether the borrower will receive student loan relief. Politico reported that DeVos has agreed to testify before the House Education Committee this week after the panel chairman Rep. Bobby Scott (D-Va.) threatened to subpoena her. Perhaps there will finally be a decision by Congress that can help the DOE crumbling at the seams under the leadership of DeVos.
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