19 Dem attorneys general sue DeVos over rescinded student loan protections

RootBeerMan

macrumors 65816
Original poster
Jan 3, 2016
1,266
5,003
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.

http://thehill.com/homenews/administration/340818-19-dem-attorneys-general-file-lawsuit-against-devos-over-student-loan

Nineteen Democratic state attorneys general are suing Secretary of Education Betsy DeVos over rescinded student loan regulations.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.
 
  • Like
Reactions: MadeTheSwitch

JayMysterio

macrumors 6502a
Apr 24, 2010
660
11,990
Rock Ridge, California
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.

http://thehill.com/homenews/administration/340818-19-dem-attorneys-general-file-lawsuit-against-devos-over-student-loan
How this wasn't a bigger deal I will never know. Especially since it seemed she did have some degree of conflict of interest in her having an interest in a debt collection agency that does business with the Dept of Education.
 

rjohnstone

macrumors 68040
Dec 28, 2007
3,482
3,397
PHX, AZ.
DeVos is the reason I am no longer a registered Republican.
Her confirmation was the final straw for me. That bitch stands for everything that is WRONG with today's education system.
Now I don't agree with the liberal philosophies that have found their way into public education, her ideas are just plain destructive.
 
  • Like
Reactions: HEK and CaptMurdock

DearthnVader

macrumors 6502a
Dec 17, 2015
890
4,859
Red Springs, NC
http://all4ed.org/take-action/action-academy/the-economic-case-for-reducing-the-high-school-dropout-rate/

Based on March 2014 data from the U.S. Bureau of Labor Statistics, high school dropouts are nearly three times more likely to be unemployed than college graduates. Even when employed, high school dropouts earn about $8,000 a year less than high school graduates and approximately $26,500 a year less than college graduates, based on calculations by the Alliance for Excellent Education.

Looking into the future, the job prospects aren’t getting any brighter for individuals with lower levels of education. According to research by the Georgetown Center on Education and the Workforce, 65 percent of all jobs in 2020 will require some form of education after high school.

Most people understand the heavy yoke that high school students place around their own necks when they drop out of school, but few understand that the drag goes far beyond the impact on the individuals. As research by the Alliance for Excellent Education has found, high school dropouts also influence a community’s economic, social, and civic health.

While data on the education attainment of inmates is sparse, a 2004 survey of inmates in state and federal correctional facilities by the U.S. Bureau of Justice Statistics finds that 67 percent of inmates in America’s state prisons, 56 percent of federal inmates, and 69 percent of inmates in local jails are high school dropouts.