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Head of Dept of Ed Overruled Internal Findings On Defrauded Student Borrowers

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Anonymous
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Head of Dept of Ed Overruled Internal Findings On Defrauded Student Borrowers

(this is not meant to be a political discussion. It is difficult to talk about the topic of the Dept of Education without discussing its leadership and the effects on students. Please keep discussion civil)
"Documents obtained by NPR shed new light on a bitter fight between defrauded student borrowers and U.S. Education Secretary Betsy DeVos.

These borrowers — more than 200,000 of them — say some for-profit colleges lied to them about their job prospects and the transferability of credits. They argue they were defrauded and that the Education Department should erase their federal student loan debt under a rule called "borrower defense."

DeVos disagrees: She says most student borrowers still got value from these schools and deserve only partial relief from their federal loans.

Now, internal Education Department memos obtained by NPR show that career staff in the department's Borrower Defense Unit came down firmly on the side of defrauded borrowers."

https://www.npr.org/2019/12/11/786367598/betsy-devos-overruled-education-dept-findings-on-defrauded-...

When lawsuits against Devos, the Dept of Education and the CFPB itself, it will be interesting to see how this all turns out.
Any thoughts on this? How have your loans been affect by the Dept of Education and servicer's?
Have you found your experiences with your loans to be as expected?
1 REPLY 1
calyx
Super Contributor

Re: Head of Dept of Ed Overruled Internal Findings On Defrauded Student Borrowers

DeVos disagrees: She says most student borrowers still got value from these schools and deserve only partial relief from their federal loans.

 

While I can kind of understand that line of thinking (hey, you still learned something, and therefore got something out of your education), it doesn't take into account, that even if you did, your job prospects were materially harmed by the fact that you went to a school that is known for fraudulent activities and therefore those degrees can be seen as tainted and taken less seriously.

Happy practitioner of AZE7or8or9or10 | Team Finances > FICO
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