Lisa Madigan sues DeVos over for-profit college rules – Education News

on Jul6

6 July 2017 | 3:15 pm

Democratic attorneys general in 18 states—including Illinois—and the District of Columbia are suing Education Secretary Betsy DeVos over her decision to suspend rules meant to protect students from abuses by for-profit colleges.

The lawsuit was filed Thursday in federal court in Washington and demands implementation of borrower defense to repayment rules.

The rules aim to make schools financially responsible for fraud and forbid them from forcing students to resolve complaints outside court.

They were created under President Barack Obama’s administration and were to take effect July 1.

On June 14, DeVos announced the rules would be delayed and rewritten, saying they created “a muddled process that’s unfair to students and schools.”

Today’s lawsuit, Illinois Attorney General Lisa Madigan said in a statement, alleges the department violated federal law “by abruptly rescinding its Borrower Defense Rule, which cracked down on abusive higher education institutions that defraud students by allowing those students to obtain loan forgiveness.”

Madigan said the rule was finalized in November 2016 following the collapse of Corinthian Colleges, “a national for-profit chain that operated Everest College campuses in the Chicago area before its closure.”

She said in the statement, “Students should not have to pay for student loans they obtained to attend fraudulent schools that promised education and training that they did not provide. The Department of Education has clear evidence of Corinthian’s widespread fraud, yet it has delayed relief for thousands of these former students and others who are still on the hook for their student loan debt.”

Massachusetts Attorney General Maura Healey is leading the lawsuit and says DeVos’ decision is “a betrayal of her office’s responsibility and a violation of federal law.”

Read more:

Lawmakers back tighter controls on for-profit education
DeVry, Career Education join push against new rules designed to limit student-loan defaults
DeVry parent changes name



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