Betsy DeVos Just Made It Harder for Defrauded Students to Get Their Debt Canceled

Democratic presidential candidates are pissed.

Oliver Contreras, AP

Fight disinformation: Sign up for the free Mother Jones Daily newsletter and follow the news that matters.

Just in time for the start of a new school year, Education Secretary Betsy DeVos on Friday finalized a new suite of changes to an Obama-era policy that targeted fraud at for-profit colleges. The new DeVos rule significantly raises the bar students have to clear in order to qualify for debt forgiveness when their schools close while they’re enrolled.

After state and federal investigations into fraud at some of the country’s biggest for-profit college operators caused the schools to shutter, thousands of students found themselves deep in debt for incomplete degrees. As my colleague Eddie Rios reported last year:

The Century Foundation, a Washington-based think tank, found in May that more than 127,000 debt relief claims were filed to the Education Department by March 2018, up 29 percent from August 2017….More than 98 percent of those claims came from students who attended for-profit colleges. 

The Obama program has cleared $222 million in loans from nearly 20,000 borrowers since 2016, according to the New York Times. But as a result of the new DeVos rule, after July 2020, students filing for debt relief will have to prove their colleges intentionally deceived them, that it influenced their decision to enroll, and that it made them financially suffer. The change also sets a three-year deadline for filing a claim; the Obama rule had no deadline and automatically relieved their debts if they didn’t enroll elsewhere within three years. 

The Trump administration has repeatedly tried to delay rules for for-profit colleges and student loan forgiveness. Last year, a federal court called the delay “arbitrary and capricious,” ordering DeVos to implement the Obama-era rule. Student and consumer advocates plan to legally challenge DeVos’ latest replacement, as well. 

Student loans and Devos’ unpopular run as secretary of education have become a centerpiece of Democratic presidential politics. The 2020 field quickly condemned DeVos over the weekend.

 

 

AN IMPORTANT UPDATE

We’re falling behind our online fundraising goals and we can’t sustain coming up short on donations month after month. Perhaps you’ve heard? It is impossibly hard in the news business right now, with layoffs intensifying and fancy new startups and funding going kaput.

The crisis facing journalism and democracy isn’t going away anytime soon. And neither is Mother Jones, our readers, or our unique way of doing in-depth reporting that exists to bring about change.

Which is exactly why, despite the challenges we face, we just took a big gulp and joined forces with The Center for Investigative Reporting, a team of ace journalists who create the amazing podcast and public radio show Reveal.

If you can part with even just a few bucks, please help us pick up the pace of donations. We simply can’t afford to keep falling behind on our fundraising targets month after month.

Editor-in-Chief Clara Jeffery said it well to our team recently, and that team 100 percent includes readers like you who make it all possible: “This is a year to prove that we can pull off this merger, grow our audiences and impact, attract more funding and keep growing. More broadly, it’s a year when the very future of both journalism and democracy is on the line. We have to go for every important story, every reader/listener/viewer, and leave it all on the field. I’m very proud of all the hard work that’s gotten us to this moment, and confident that we can meet it.”

Let’s do this. If you can right now, please support Mother Jones and investigative journalism with an urgently needed donation today.

payment methods

AN IMPORTANT UPDATE

We’re falling behind our online fundraising goals and we can’t sustain coming up short on donations month after month. Perhaps you’ve heard? It is impossibly hard in the news business right now, with layoffs intensifying and fancy new startups and funding going kaput.

The crisis facing journalism and democracy isn’t going away anytime soon. And neither is Mother Jones, our readers, or our unique way of doing in-depth reporting that exists to bring about change.

Which is exactly why, despite the challenges we face, we just took a big gulp and joined forces with The Center for Investigative Reporting, a team of ace journalists who create the amazing podcast and public radio show Reveal.

If you can part with even just a few bucks, please help us pick up the pace of donations. We simply can’t afford to keep falling behind on our fundraising targets month after month.

Editor-in-Chief Clara Jeffery said it well to our team recently, and that team 100 percent includes readers like you who make it all possible: “This is a year to prove that we can pull off this merger, grow our audiences and impact, attract more funding and keep growing. More broadly, it’s a year when the very future of both journalism and democracy is on the line. We have to go for every important story, every reader/listener/viewer, and leave it all on the field. I’m very proud of all the hard work that’s gotten us to this moment, and confident that we can meet it.”

Let’s do this. If you can right now, please support Mother Jones and investigative journalism with an urgently needed donation today.

payment methods

We Recommend

Latest

Sign up for our free newsletter

Subscribe to the Mother Jones Daily to have our top stories delivered directly to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate