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Betsy DeVos Loses Student Loan Lawsuit Brought by 19 States

Betsy DeVos Loses Student Loan Lawsuit Brought by 19 States
(Arenacreative/Dreamstime)

Thursday, 13 September 2018 11:11 AM

A lawsuit brought by 19 states and the District of Columbia, accusing Secretary Betsy DeVos' Education Department of wrongly delaying implementation of Obama-era regulations meant to protect students who took out loans to attend college from predatory practices, was decided in favor of the states.

A Washington federal court judge Wednesday ruled the department's postponement of the so-called Borrower Defense rule was procedurally improper.

The Obama administration created the rule in the wake of revelations that some for-profit colleges enticed students with promises of an education and diplomas that would allow them to get jobs in their chosen fields. In reality, many of those certifications were not recognized by prospective employers, leaving graduates saddled with student loans they could not repay.

The department deprived plaintiffs "of several concrete benefits that they would have otherwise accrued," U.S. District Judge Randolph Moss wrote in a 57-page opinion. "The relief they seek in this action – immediate implementation of the Borrower Defense regulations – would restore those benefits."

Writing that he did not want to delay matters further, Moss said he will hold a hearing Friday to consider remedies.

The Department of Education did not immediately respond to a request for comment.

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The District of Columbia and 19 states won a lawsuit claiming Secretary Betsy DeVos' Education Department of wrongly delaying implementation of Obama-era regulations meant to protect students who took out loans to attend college from predatory practices.
betsy devos, student, loan, lawsuit
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2018-11-13
Thursday, 13 September 2018 11:11 AM
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