Latest News and Comment from Education

Showing posts with label LOAN SHARKS. Show all posts
Showing posts with label LOAN SHARKS. Show all posts

Friday, May 21, 2021

Judge Orders DeVos to Testify About Cruel Treatment of Students Who Were Defrauded | Diane Ravitch's blog

Judge Orders DeVos to Testify About Cruel Treatment of Students Who Were Defrauded | Diane Ravitch's blog
Judge Orders DeVos to Testify About Cruel Treatment of Students Who Were Defrauded



Salon wrote about a

A federal judge on Wednesday ruled that former Education Secretary Betsy DeVos will have to testify in a class action lawsuit over her handling of the Education Department’s student debt loan forgiveness program.

Judge William Alsup said “exceptional circumstances” warrant issuing DeVos a subpoena, a move that goes against both Devos’ and the Biden administration’s requests to excuse her from providing testimony.

The lawsuit, which has been brought on behalf of about 160,000 borrowers, alleges that the plaintiffs were defrauded by for-profit colleges and then neglected by the federal government.

The controversy dates back to 2018, when the Department of Education unexpectedly stopped making decisions on “student-loan borrower-defense applications,” in which students could petition the CONTINUE READING: Judge Orders DeVos to Testify About Cruel Treatment of Students Who Were Defrauded | Diane Ravitch's blog

Monday, May 17, 2021

Secretary Cardona Begins to Correct DeVos’s College Loan Policies that Undermined Vulnerable College Students’ Access to Education | janresseger

Secretary Cardona Begins to Correct DeVos’s College Loan Policies that Undermined Vulnerable College Students’ Access to Education | janresseger
Secretary Cardona Begins to Correct DeVos’s College Loan Policies that Undermined Vulnerable College Students’ Access to Education



Education Secretary Miguel Cardona has begun repairing some of the injustice of Betsy DeVos’s policies in the federal college loan program administered by the U.S. Department of Education.

In an extremely significant first step, two weeks ago, Cardona replaced Mark A Brown, who had been appointed by Betsy DeVos in 2019 to oversee the Department’s enormous student loan program. Brown is known to have favored the interests of the for-profit colleges that depend for their existence on tuition derived from student loans. As Brown’s replacement, Cardona has appointed Richard Cordray, a dogged advocate for the students and military veterans who have been preyed upon by for-profit colleges.

The Washington Post‘s Danielle Douglas-Gabriel reports: “Education Secretary Miguel Carrdona… named Richard Cordray, the first director of the Consumer Financial Protection Bureau, to head the federal office that oversees the government’s $1.5 trillion student loan portfolio. Cordray led the bureau’s crackdown on consumer abuses in debt collection, student loan servicing, and for-profit colleges, garnering the respect of advocates and drawing the ire of those industries. His selection signals tougher oversight of the Education Department’s contractors and enforcement of the rules governing federal student aid… During his six-year tenure at the CFPB, which he joined in 2011, Cordray frequently clashed with the financial industry and conservatives over his aggressive regulation. His efforts to weed out poor servicing of student loans and predatory career training schools at times put him at odds with the Education Department… The CFPB under Cordray’s direction brought some of the most high-profile student lending cases in recent years. Among them: a lawsuit against the now-defunct for-profit giant Corinthian Colleges for steering students into private loans that had interest rates as high as 15 percent.”

In a piece for The American ProspectRobert Kuttner summarizes some of the outrageous CONTINUE READING: Secretary Cardona Begins to Correct DeVos’s College Loan Policies that Undermined Vulnerable College Students’ Access to Education | janresseger