Landmark court ruling on student borrower defense flies in face of Trump veto – Yahoo Finance
A federal court ordered the discharge of student loans under an Obama-era borrower defense rule for the first time on the same day that a vote to override President Trump’s veto related to the same rule failed in the House.
The implications of Friday’s events bring more uncertainty to hundreds of thousands of affected borrowers as the watershed court ruling faces a potential appeal and consumer advocates vow to continue fighting the Trump administration’s repeal of rules designed to protect defrauded student borrowers.
Massachusetts ruling grants debt relief to 7,200
On Friday afternoon, a federal judge ordered the Department of Education (ED) to cancel roughly 7,200 former Corinthian Colleges’ student debt in Massachusetts.
“Thousands of Massachusetts students cheated by Corinthian have finally had their day in court, and they have won,” Massachusetts Attorney General Maura Healey stated. “This landmark victory for students will cancel the federal loans for thousands of defrauded borrowers, mostly Black and Latinx students, targeted by a predatory for-profit school and abandoned by Secretary DeVos and the Trump Administration. For five years, our office and the Project on Predatory Student Lending have fought to win students the relief they deserve and today we have won decisively.”