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Education Law

Apr. 14, 2020

Education Department agrees to settle with students in loan dispute

The lawsuit alleged Education Secretary Betsy DeVos damaged plaintiffs’ potential earnings and credit by illegally pausing the borrower defense to repayment program, which forgives federal student loans for students cheated by colleges.

After declining to do so for almost two years, the U.S. Department of Education will resume processing debt relief claims for defrauded students.

Under the proposed deal filed on Friday, nearly 170,000 students who claimed they were scammed by for-profit colleges will receive decisions on whether their loans will be forgiven within 18 months.

The lawsuit alleged Education Secretary Betsy DeVos dam...

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