Judge blasts DeVos’ sweeping denials of student loan relief claims as ‘disturbingly Kafkaesque’

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A federal judge scrapped a settlement today over the Trump administration’s slow processing of loan forgiveness for borrowers who have accused their colleges of fraud, ruling that Education Secretary Betsy DeVos undermined the deal

from the court, was meant to force the Education Department to move faster on final decisions for roughly 160,000 of the backlogged requests for loan forgiveness, known as “borrower defense” claims. Some of the claims have languished at the department for years.

The judge, who President Bill Clinton appointed for the Northern District of California, also took the unusual step of authorizing the depositions of up to five Education Department officials to probe the Trump administration’s decision to deny the claims and its months-long delays in processing them. He wrote that DeVos “at this time” would not be required to personally sit for a deposition but said it is a possibility in the future.

As a result, borrowers face a process that “rings disturbingly Kafkaesque,” Alsup wrote in describing the system as oppressive. The Education Department said borrowers could appeal the denials by explaining why they believed the department incorrectly decided their claim, but it never provided any meaningful explanation for how it came to those conclusions, he said.

“Students came together to speak up for themselves and show the court the massive scope of the trauma they have endured at the hands of the Department of Education, and the courts are listening,” said Eileen Connor, legal director at Harvard Law School’s Project on Predatory Student Lending, which represents the students in the class action lawsuit along with legal group Housing & Economic Rights Advocates.

 

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