Betsy DeVos has sought to make it more difficult for defrauded student loan borrowers to get full debt relief with an approach that is facing political and legal challenges.
Democrats in the U.S. House of Representatives were able to pass a measure last week expressing opposition to Education Secretary Betsy DeVos’s borrower-defense rule. But because of politics and both ongoing and upcoming legal battles, the vote did little to clear up what will happen to students who are asking for their loans to be discharged because they were defrauded by colleges.
Hardly clear are two questions: how to deal with the backlog of more than 200,000 borrowers, most of whom attended for-profit institutions, who’ve been waiting for the Education Department to process their requests for debt forgiveness.
Also uncertain is how cases will be handled in the future. A new rule proposed by DeVos that would make it harder for borrowers to get relief is set to go into effect in July, but it will likely be challenged in the courts before then.