Department of Education Amended Complaint by 19 States and D.C.

A number of states have filed an amended complaint against the Department of Education and Elisabeth DeVos over the handling of the Borrower Defense to Repayment Program gutted by the Trump administration. The allegations made by a number of states is that the Trump Department of Education has changed the rules about student loan forgiveness … Read more

Like Driving Into a CAT 5 Hurricane, the Department of Education is Taking the Student-Loan Program Toward Catastrophe

I lived in Houston when Hurricane Rita hit the Gulf Coast in 2005. Weather forecasters predicted that Rita would make landfall in Galveston Bay and that Galveston and towns south of Houston would suffer massive flooding and wind damage. The hurricane predictors also warned that parts of Houston would flood. Responding to these warnings, hundreds … Read more

Department of Education Living in Upside Down World – Debtors Come Last

I don’t know how much more bizarre and anti-consumer the Department of Education under Betsy DeVos can get. It has been horrible to watch Education end programs, drag their feet dealing with students who are the victims of fraud by schools, not holding student loan servicers accountable for good advice, and the list goes on. … Read more

NC Calls on Department of Education to Cooperate Again With Law Enforcement Again

North Carolina Attorney General Josh Stein yesterday called on the U.S. Department of Education to honor its “historic law enforcement partnerships” by reinstating the long-standing practice of disclosing student loan information to law enforcement agencies – a practice it curtailed without explanation last month. In a letter sent last Friday to U.S. Education Secretary Betsy … Read more

Is the Department of Education Just Being a Giant Bully?

Distressed debtors cannot discharge student loans unless they can show their loans constitute an “undue hardship” to themselves and their dependents. Congress did not define undue hardship in the Bankruptcy Code, so it was left to the courts to define the term. Most courts have adopted the Brunner test for determining when a student loan … Read more

ECMC and Department of Education Kick Hard at Student Loan Debtor But Court Award Discharge

Barbara Erkson, an unmarried 64-year-old woman, filed an adversary proceeding in a Maine bankruptcy court in an attempt to discharge $107,000 in student loans in bankruptcy. The U.S. Department of Education and Educational Credit Management Corporation (ECMC) vigorously objected, but Judge Peter Carey rejected their heartless arguments and granted Ms. Erkson a full discharge. This … Read more

Can Corinthian College Student Get Screwed Over Even More? Yes They Can.

In this previous post I talked about the new Department of Education policy to no longer issue full forgiveness on student loans for students which had been clearly screwed over. In their unbridled dystopian view of how to handle victims, the Department of Education decided only partial forgiveness may be available for students who attended … Read more

Let Me Paraphrase Dept ED OIG to Congress, “WTF?”

The Office of Inspector General of the Department of Education was left recently politely scratching their head after reviewing proposed Congressional legislation to roll back protections for students from problematic debt. Congress is currently salivating to make changes while reauthorizing the Higher Education Act (HEA) and the OIG reviewed the proposals to “promote the efficient … Read more

Is Betsy DeVos Nuckin Futs With Break From Student Loan Debtor Protections

The Consumerist is reporting the Department of Education has terminated its cooperation with the Consumer Financial Protection Bureau in dealing with student loan servicer problems. “DeVos accuses the Bureau of not living up to its end of agreements established in 2011 and 2013, by doing too much to hold loan servicers accountable.” “DeVos suggests that … Read more

Trump and DeVos Giving For-Profit Colleges a Free Pass and Set Fire to Protections

POLITICO reports that, seven months into the Trump administration, Department of Education Secretary DeVos has: — Moved to gut two major Obama-era regulations reviled by the industry that would have cut off funding to low-performing programs and made it easier for defrauded students to wipe out their loans; — Appointed a former for-profit college official, … Read more

Trump Has Secretive Teams to Roll Back Regulations, Led by Hires With Deep Industry Ties

President Trump entered office pledging to cut red tape, and within weeks, he ordered his administration to assemble teams to aggressively scale back government regulations. But the effort – a signature theme in Trump’s populist campaign for the White House – is being conducted in large part out of public view and often by political … Read more

Members of Congress Raise Reasonable Concerns Over Moves by Department of Education

I’ve written recently about changes in the proposed single source provider of federal student loan servicing and the removal of key information to debtors which would help people make more informed decisions about how to handle their student loan debt. It appears about 150 Members of Congress got on the boat as well. The seemingly … Read more

Attorneys General Perplexed With Department of Education Roll Back of Student Protections

Twenty-two state Attorneys General sent a letter on April 24, 2017 to Department of Education Secretary of Education and questioned her efforts to roll back protections of student loan debtors. The letter stated: “We, the undersigned Attorneys General of Massachusetts, Illinois, California, Connecticut, Hawaii, Iowa, Kentucky, Maine, Maryland, Minnesota, Mississippi, New Mexico, New York, North … Read more

Why the Hell is the Department of Education Putting Out Opioid Press Releases?

I’ve been trying to give Department of Education Secretary Betsy DeVos a chance to make chances that are good for student debtors. But most of the press releases have been about appearances. Now the latest press release from the Department of Education isn’t even about education. It was titled, “Statement from Secretary of Education Betsy … Read more