More than 158,000 student loan borrowers filed a class action lawsuit against the U.S. Department of Education and its head, Secretary Betsy Devos on Tuesday.
The student loan borrowers, who are victims of fraud by for-profit colleges, accused the agency and Sec. Devos of failing to comply with an existing regulation known as “borrower defense.”
Under the regulation, students and former students are eligible for federal loan cancellation or debt relief if the college misled them or violated state laws relating to their education.
Allegations against Department of Education, Sec. Devos
In their complaint, the plaintiffs stated that since 2018, the Department received applications for debt relief from over 160,000 former for-profit college students. However, the agency “has not granted or denied a single application and it has no timetable to do so.”
They alleged that the Department under the leadership of Sec. Devos is “ignoring the growing pile of borrower defenses.”
Additionally, the plaintiffs alleged that the Department intentionally adopted a policy of inaction and obfuscation.”
