"Thousands of students who took out federal loans to attend schools that
lured them with fraudulent claims will still have to repay a portion of
their debts, the Education Department said Tuesday — a new attempt to
water down a loan-forgiveness program that the department’s leader has
long deplored."
Stacey Cowley, writing for The New York Times explains:
"The change creates a complicated sliding scale
on which defrauded students’ relief is calculated using group earnings
data. Debts will be fully forgiven only if students in a particular
program earned far less than those from similar programs at other
schools."
Education Secretary Betsy "DeVos sought in 2017 to reduce the relief offered through the rule known as “borrower defense to repayment,”
which allows the former students of schools that broke laws to seek
forgiveness of their federal student loans. A federal court blocked that effort,
saying the department’s method for determining how much relief to grant
applicants illegally misused individual income data obtained from
another federal agency."
"Ms. DeVos’s actions are 'a slap in the face of students across the
country,' a group of students who attended now-closed for-profit schools
said in a letter sent to the secretary on Tuesday."
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