Trump Administration Effort To Screw For Profit College Student Loan Debtors Thwarted

This is a huge victory for students harmed by a flawed for profit higher education sector.

Students defrauded by for-profit colleges scored an important victory on Tuesday, when a court cleared the way for an Obama-era policy that will make it easier for them to get their student loans forgiven. 

Education Secretary Betsy DeVos had said the regulation, known as borrower defense, made discharging loans too easy and was unfair to taxpayers. The rule was due to take effect in July 2017, but DeVos froze it while she worked on devising a new regulation. 

But U.S. District Judge Randolph Moss ruled last month that DeVos’ delay was unlawful. On Tuesday, he denied a request by an organization representing for-profit colleges in California, to further postpone the rule, thus paving the way for borrower defense to enter into force. . . .

A progressive think tank estimates Tuesday’s decision will affect tens of thousands of students at over 1,400 schools who will now be eligible for $400 million in automatic debt relief across the nation.

From the Denver Post.

Of course, appeals will likely follow and could derail this win.