Home News In Victory For Borrowers, DeVos Agrees To Stop Issuing Mass Denials Of Loan Forgiveness Applications – Forbes

In Victory For Borrowers, DeVos Agrees To Stop Issuing Mass Denials Of Loan Forgiveness Applications – Forbes

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Student loan borrowers scored a victory in court this week against Education Secretary Betsy DeVos, as litigation continues over mass denials of student loan forgiveness applications.

The case, Sweet v. DeVos, concerns the troubled Borrower Defense to Repayment program. The Obama administration enacted regulations governing this loan forgiveness program in 2016 to provide student debt relief to students who were misled, defrauded, or otherwise harmed by predatory colleges and universities – often, for-profit schools.

Under Secretary DeVos, however, the Department of Education rewrote the rules governing the Borrower Defense program. New regulations that went into effect on July 1 of this year substantially weakened the Borrower Defense relief provided to student loan borrowers by increasing the burden of proof required to prevail, and imposing a strict statute of limitations.

Borrower advocates previously accused DeVos and the Department of Education of deliberately holding up the processing of nearly 170,000 Borrower Defense applications, in some cases for years. A Department spokesperson previously disputed this, stating that some applications were in fact processed, and that the Department did not process additional applications due to ongoing litigation.

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