19 attorneys general sue Education Secretary Betsy DeVos over gainful employment rule

Nineteen U.S. state attorneys general are suing Education Secretary Betsy DeVos for overturning an Obama-era rule designed to protect students from predatory education institutions.

The 2014 gainful employment rule was created by the Obama administration to ensure that schools — many of them for-profit colleges —were denied access to federal aid if their graduates had weak career prospects and heavy debt loads.

DeVos repealed the rule in July 2019, and her decision goes into effect on July 1.

On June 24, attorneys general of the states of Pennsylvania, Maryland, Colorado, New Jersey, Connecticut, Delaware, D.C., Hawaii, Illinois, Massachusetts, Michigan, Minnesota, New York, North Carolina, Oregon, Rhode Island, Vermont, Virginia and Wisconsin sued Betsy DeVos and her agency. The lawsuit was filed in U.S. District Court in D.C.

“Betsy DeVos’s unjustified and illegal repeal of the Gainful Employment rule is yet another example of the Trump Administration’s continued efforts to dismantle

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After Trump veto, Education Secretary DeVos sued over Obama-era rule change

The Department of Education (ED) changed its rules on how students defrauded by for-profit colleges seek debt relief, leading to a political fight to return the rule to its Obama-era form and a veto from President Trump in support of the rule change.

And now consumer advocates are suing over the program.

A lawsuit filed on Tuesday by Public Citizen and the Project on Predatory Student Lending against the Department of Education (ED) targets the “Partial Relief Rule,” arguing that DeVos’ new standards “wrongfully denies student loan borrowers who have successfully established a claim through the borrower defense process most of the relief to which they are entitled on their federal student loans.”

The Department of Education did not immediately return a request for comment.

U.S. President Donald Trump (R, background) and Vice President Mike Pence (L) wait to interrupt Education Secretary Betsy DeVos as she speaks to students at

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California AG sues DeVos over troubled public service loan forgiveness program

California Attorney General Xavier Becerra is suing Education Secretary Betsy DeVos over a roundly criticized loan forgiveness program designed for public service workers.

The lawsuit alleges that the Education Department (ED) is “flouting Congress’s clear and repeated instructions to provide student loan debt relief to public servants” and making loan forgiveness “virtually inaccessible” through a “convoluted application process” for these borrowers.

“College graduates who put in a decade of hard work and made timely payments on their student loans earned their [temporary public service] loan forgiveness. But Education Secretary Betsy DeVos chose to ignore all of that,” Attorney General Becerra said in a statement. “Today’s lawsuit reminds Secretary DeVos that she is not above the law.”

Becerra added that DeVos “is accountable to these college graduates who followed the rules and deserve better, especially amidst an economic crisis of historic proportions.”

Amid the coronavirus pandemic, this “mismanagement” of the loan

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Student loan borrowers sue Betsy DeVos and Steven Mnuchin over seized tax refunds

Consumer advocates are suing Education Secretary Betsy DeVos and Treasury Secretary Steven Mnuchin for their departments’ failure to stop seizing student loan borrowers’ tax refunds to pay for their defaulted loans, despite declaring that it would stop doing so on March 25.

The class action suit was filed by nonprofit organizations Student Defense and Democracy Forward against the Department of Treasury, the Department of Education (ED), Steven Mnuchin and Betsy DeVos on May 29 in the United States District Court for the District of Columbia.

The group alleges that despite millions of Americans losing their jobs amid the pandemic, the Treasury has seized more than $18 million in tax refunds from over 11,000 borrowers in April 2020.

“In the middle of this devastating pandemic, Secretary Mnuchin and Secretary DeVos have been illegally offsetting tax refunds of student borrowers despite clear instructions from Congress and the President to stop,” Alice Yao,

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Education Secretary Betsy DeVos sued over wage garnishment amid coronavirus pandemic

Consumer advocates are suing Education Secretary Betsy DeVos for her department’s failure to stop garnishing student loan borrowers’ wages, despite declaring that it would suspend wage garnishment on March 25. 

The class action suit was filed by Student Defense, the National Consumer Law Center, with the support of the Student Borrower Protection Center, against the Department of Education and DeVos.

“The Trump Administration is taking money from borrowers who are living on the edge of poverty, in the middle of a pandemic, and in violation of the law,” Student Borrower Protection Center Executive Director Seth Frotman said in a statement. “It’s completely outrageous.” 

Frotman added that the organizations were prepared to “do everything in our power to stop Betsy DeVos from further driving struggling borrowers into despair,” adding that this class action lawsuit in particular “shines light on how she has been operating a student debt collection machine that is

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