A judge ordered Betsy DeVos to cancel the debt of 7,200 former for-profit college students in Massachusetts who had applied for student loan relief. The students attended Corinthian Colleges, a for-profit college chain that collapsed in 2015.
During most of the Trump administration’s tenure, the U.S. Department of Education, led by Betsy DeVos, has worked to limit student debt cancellation for borrowers who say they were scammed by their schools.
“No matter what the administration is doing, or arguing, or saying, people have rights and they can get those rights recognized in court,” said Toby Merrill, the director of Harvard Law School’s Project on Predatory Student Lending, which represented the borrowers in Massachusetts. “The Department can try and shut down the concept of people having a right to discharge these bogus debts, but it can’t actually erase the truth of that.
Corinthian allegedly targeted women of color specifically in its recruiting efforts, according to Merrill. Some 80% of the school’s students were women and three-quarters of their students in Massachusetts were black or Latinx, he said. Under DeVos, the Department heightened the burden of proof for borrowers seeking debt cancellation under the law. For example, the agency requires former students to prove they’d been harmed financially by their school’s actions. Consumer advocates have said the DeVos version of the rule makes it difficult for borrowers who were harmed by their schools to get relief.
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