Education Secretary Betsy DeVos is being sued by eighteen states for allegedly delaying new federal regulations designed to protect student loan borrowers from being scammed by for-profit colleges and other schools. The rules, known as borrower defense to repayment, were developed after a series of high-profile collapses of for-profit chains such as Corinthian Colleges and ITT Technical Institute left thousands of students with worthless degrees and mountains of student loan debt. The regulations were developed by the Obama administration and scheduled to take effect on June 30.
Last month DeVos delayed the implementation and launched an effort to rewrite the rules, arguing they were putting taxpayers at risk for “significant costs.” The lawsuit, filed by attorneys general from 18 states plus the District of Columbia, said DeVos’ violated the Administrative Procedures Act because she did not satisfy the standards for a delay, and failed to give the proper notice or offer the public time to comment.
“These rules served as critical protections against predatory for-profit schools that exploit hard-working students–students who are simply trying to invest in their own education and future,” said New York Attorney General Eric Schneiderman, who also was among those filing the suit.
Click here to read more on this story.
For borrowers who are struggling with student loan debt, relief options are available. Many student loan borrowers are unaware that they have rights and repayment options available to them, such as postponement of loan payments, reduction of payments or even a complete discharge of the debt. It is important you contact an experienced Miami bankruptcy attorney who can advise you of all your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.