Judge rejects settlement over stalled student debt relief claims, blames DeVos for harming borrowers

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A federal judge denied a proposed court settlement between the Trump administration and defrauded borrowers after the administration revealed its widespread denials of requests for student debt cancellation.

U.S. District Judge William Alsup in the Northern District of California blasted Education Secretary Betsy DeVos for denying 94 percent of the debt relief claims the department has processed since reaching the agreement in April.

“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, the legal director of the Project on Predatory Student Lending, a group representing the borrowers.

 

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