Home News Student Loan Borrowers Succeed In Lawsuit Against DeVos – Forbes

Student Loan Borrowers Succeed In Lawsuit Against DeVos – Forbes

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A federal judge has preliminarily approved a final settlement agreement between a class of student loan borrowers and the U.S. Department of Education. Under the terms of the settlement agreement, the Department would be required to process around 170,000 applications for loan forgiveness that have been stalled, in some cases for years.

The case is Sweet v. DeVos. Here are the details.

Background
Student loan borrowers had submitted tens of thousands of applications for student loan forgiveness provided by the Borrower Defense to Repayment program. Final regulations governing the Borrower Defense program were created by the Obama administration in 2016. The program is designed to provide relief to students who were defrauded by predatory schools.

When DeVos took over the U.S. Department of Education in 2017, however, her administration rewrote the Borrower Defense regulations, making it substantially more difficult for borrowers to obtain relief under the program. Student loan borrowers fought back with multiple lawsuits.

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