Scammed student-loan borrowers accuse Betsy DeVos of illegally stalling on debt-cancellation claims – Market Watch
The lawsuit is the latest development in a yearslong battle over the fate of borrowers who say they were scammed by their schools
But she has yet to hear back from the Department. Meanwhile, her debt has ruined her credit, making it difficult for her to get a new car when she needed one or move up in her field of law enforcement, which often requires a credit check. “It causes a lot of anxiety, it stresses me out a lot,” Davis said of her debt situation. “I try not to let it bog me down.”
Now Davis is fighting back. She’s part of a class-action lawsuit filed Tuesday, accusing the Secretary of Education, Betsy DeVos, and the Department of Education of illegally stalling their decision on at least 158,000 borrower defense claims filed by people like Davis.
“The law is really clear, but the Department of Education has ignored their claims,” said Eileen Connor, legal director at Harvard Law School’s Project on Predatory Student Lending, which is representing the borrowers. “Students are coming forward today to say enough is enough.”
The suit is the latest development in a years-long battle over the fate of student loan borrowers who were scammed by their schools. Borrowers have had the right to have their debt discharged in cases of fraud under the borrower defense law since the 1990s. But it wasn’t until the collapse of Corinthian Colleges in 2015, that borrowers, organized by activists, began filing claims in droves.