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Defrauded Students Will Stay Indebted | Courthouse News Service

Education Secretary Betsy Devos need not provide full debt relief to more than 60,000 defrauded students, but she must stop collecting on their loans, a federal judge said in court Monday. Lawyers for a proposed class of borrowers had asked U.S. Magistrate Judge Sallie Kim to revive an Obama-era policy that promised full debt forgiveness to students defrauded by the now-defunct, for profit Corinthian Colleges.

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Student Loans: Former Corinthian Colleges Students Win a Reprieve in Fight with Feds | USA Today

Thousands of former Corinthian Colleges students have won a preliminary victory in their court battle to cancel millions of dollars in federal loan debt for their studies at the scandal-scarred, for-profit schools. A judge late Friday temporarily barred the U.S. Department of Education from continuing to collect loan debts from the students based on allegations the agency violated the federal Privacy Act.

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Court: Gov’t violated law for defrauded students | Associated Press

A federal court has ruled that the Education Department violated privacy laws with regard to students defrauded by the Corinthian for-profit college chain. In a break with Obama administration policy, Education Secretary Betsy DeVos announced in December that some students cheated by the now-defunct schools would only get a part of their federal student loan forgiven.

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