Student Loan Related

DeVos Seems to Do Right Thing After Being Shoved and Cancels $150M in Student Loan Debt

Written by Steve Rhode

The Trump Department of Education has been the enemy of student loan debtors and often, common sense.

Secretary of Education Betsy DeVos recently gave the nod to finally forgiven $150 million in student loan debts, but only after being pushed by the court to do so. She was unwilling to do the right thing on her own.

These student loans were the result of closed school discharges from Corinthian Colleges and other chains that shut down under the Obama administration. Other schools where students may have federal student loan debt forgiven were schools that closed between November 1, 2013 and December 4, 2018.

Apparently, some of the loans to be forgiven will be Parent PLUS loans at those closed schools.

According to Politico, “The loan cancellations also come after a California consumer advocacy group sued DeVos in November for failing to automatically cancel the federal loans of students under the 2016 “borrower defense” rules.

Sen. Patty Murray, the top Democrat on the Senate Education Committee, said she was “pleased” the department moved to discharge the loans but called on the Trump administration to go further.

“This is a good first step, but it’s not good enough,” Murray (D-Wash.) said in a statement, adding that DeVos should “abandon her attempts to rewrite the borrower defense rule to let for-profit colleges off the hook and instead fully implement the current rule and provide relief to more than 100,000 borrowers who were cheated out of their education and savings.”

It’s hard for me to applaud the Department of Education for following the law. Hard to believe they had to be pushed to do it.

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About the author

Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

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