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Facing lawsuit, DeVos erases student loans for 1,500 [View all]
Source: Associated Press
Facing lawsuit, DeVos erases student loans for 1,500
By COLLIN BINKLEY
November 8, 2019
Facing a federal lawsuit and mounting criticism, Education Secretary Betsy DeVos on Friday said she will forgive certain student loans for more than 1,500 borrowers who attended a pair of for-profit colleges that shut down last year.
Students who attended the Art Institute of Colorado and the Illinois Institute of Art will not have to repay federal student loans borrowed between Jan. 20, 2018, through the end of last year, DeVos said, although they will still be responsible for any previous loans. In all, about $11 million will be automatically canceled.
Students who attended another 24 schools owned by the same company will be able to get their loans erased if they enrolled after June 29, 2018. Federal rules typically allow students to get loans erased if their schools close within 120 days after they enroll, but DeVos said she is expanding the window in this case.
It’s meant to provide relief to students who took on debt to attend colleges owned by Dream Center Education Holdings, which collapsed last year and shuttered campuses across the nation. But some critics say it doesn’t go far enough, and still leaves many students carrying debt from a defunct chain.
“For the vast majority of defrauded students, this announcement cancels only a small portion of the loans they took out to attend a failing school,” said Rep. Bobby Scott, D-Va., chairman of the House education committee. The relief goes “well short” of what Congress requested and what students deserve, he added.
-snip-
By COLLIN BINKLEY
November 8, 2019
Facing a federal lawsuit and mounting criticism, Education Secretary Betsy DeVos on Friday said she will forgive certain student loans for more than 1,500 borrowers who attended a pair of for-profit colleges that shut down last year.
Students who attended the Art Institute of Colorado and the Illinois Institute of Art will not have to repay federal student loans borrowed between Jan. 20, 2018, through the end of last year, DeVos said, although they will still be responsible for any previous loans. In all, about $11 million will be automatically canceled.
Students who attended another 24 schools owned by the same company will be able to get their loans erased if they enrolled after June 29, 2018. Federal rules typically allow students to get loans erased if their schools close within 120 days after they enroll, but DeVos said she is expanding the window in this case.
It’s meant to provide relief to students who took on debt to attend colleges owned by Dream Center Education Holdings, which collapsed last year and shuttered campuses across the nation. But some critics say it doesn’t go far enough, and still leaves many students carrying debt from a defunct chain.
“For the vast majority of defrauded students, this announcement cancels only a small portion of the loans they took out to attend a failing school,” said Rep. Bobby Scott, D-Va., chairman of the House education committee. The relief goes “well short” of what Congress requested and what students deserve, he added.
-snip-
Read more: https://apnews.com/67cd2137990f48259db00f6250d85b54
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