- Jan 3, 2016
I would hope that other AG's, from both parties, would join in this suit. It was actually a pretty good law that protected consumers from predatory lending and fraud on the part of these crappy for profit schools. Here's hoping they succeed in their suit and put DeVos in her place. She's ill equipped for the position she's in.
Nineteen Democratic state attorneys general are suing Secretary of Education Betsy DeVos over rescinded student loan regulations.
The complaint, filed in U.S. District Court, alleges that the Department of Education violated federal law by abruptly rolling back its Borrower Defense to Repayment rule, which was designed to hold abusive higher education institutions accountable for cheating students and taxpayers out of billions of dollars in federal loans. The Obama-era rule, finalized in November 2016, was meant to better protect student borrowers against misleading and predatory practices by creating consistent, clear, fair and transparent processes to file claims.
But it angered for-profit institutions, which claimed it was unfairly punitive because it established automatic triggers requiring a school to put up a letter of credit — a large sum of money — every time a lawsuit is filed against it to protect taxpayers if the institution fails.
“Since day one, Secretary DeVos has sided with for-profit school executives against students and families drowning in unaffordable student loans,” Massachusetts Attorney General Maura Healey said in a statement Thursday.
“Her decision to cancel vital protections for students and taxpayers is a betrayal of her office’s responsibility and a violation of federal law. We call on Secretary DeVos and the U.S. Department of Education to restore these rules immediately.”
DeVos announced last month that her department was planning to re-do both the borrower defense rule and the Gainful Employment Rule, which requires schools to ensure their career training programs actually prepare students for well-paying jobs that allow them to pay back their student loans.
Consumer advocacy groups have also filed a lawsuit in the U.S. District Court for the District of Columbia, accusing DeVos of having violated the Administrative Procedure Act by postponing the Borrower Defense to Repaying rule, which was set to take effect on July 1.