Quiet Biden student loan forgiveness for 200,000 borrowers gave black eye to colleges

AAdministrators from a Florida The university declares the Biden administration When it reached a settlement, the institution was unfairly called a “malefactor” Student loans A group of students brought a lawsuit claiming that their colleges misrepresented themselves.

The Department of Education announced last summer that it would settle the matter Sweet v. Cardona A lawsuit was filed by the plaintiff to force the department into deciding claims made under the law. Borrower Defense Loan Discharge This program allows students to receive loan relief if they have been defrauded at their universities.

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These claims are Sweet v. Cardona They were only brought against For-profit colleges, colleges that were once for-profit but have been converted to nonprofit status. Initially, the suit was brought against Betsy DeVos (ex-Secretary) during Trump’s administration. The suit sought to force department to address defense claims of borrower.

“The Sweet lawsuit basically said, ‘You’ve been sitting on these claims for too long. You owe these students that adjudication of the claims,'” Diane Jones, the former principal deputy subsecretary of education under the Trump administration, spoke to the Washington Examiner. She claimed that DeVos’s Department had developed a method to adjudicate the claims. But, the federal court later stopped it.

After the transition to Biden’s administration, the department’s approach was changed. Instead of adjudicating individual claims as requested in the lawsuit, Secretary Biden’s Biden administration took over. Miguel Cardona Instead, the court settled the case and provided blanket loan forgiveness for thousands of borrowers who attended approximately 150 colleges, including University of Phoenix, Grand Canyon University and DeVry University.

Arthur Keiser, chancellor and CEO at Keiser University in Florida, spoke to the Washington Examiner Interviewer said that Everglades College Inc. owned the university. The settlement has caused the university reputational damage. Keiser stated that the university is currently fighting the settlement in Court. The university was not allowed to view the complaints accusing the institution of defrauding students and was not given the chance to defend itself.

“We’ve had prospective students who’ve not enrolled because of this [settlement],” Keiser said. “We’re concerned, we don’t understand it, and we have never seen a single complaint that the department has talked about.”

U.S. District Judge William Alsup rejected Everglades College Inc.’s motion and that of two other schools on the settlement, which sought to stop the department from implementing it. Alsup dismissed the college’s claim that they had suffered reputational damage in his ruling.

“Two months after that order issued — and more than seven months after the settlement … [was] made public — movants’ assertions of reputational harm remain markedly speculative, [and] ‘grounded in platitudes rather than evidence,'” Alsup wrote.

In a statement to Washington Examiner A spokesperson for Department of Education claimed that the Department of Education was “pleased that the court’s decision has allowed implementation of the settlement to move forward for the vast majority of covered borrowers.”

“The Department has started the process of implementing the settlement, which will provide billions of dollars in long-awaited relief to more than 200,000 borrowers and will resolve plaintiffs’ claims in a fair and equitable manner,” The spokesperson stated that. Concerning reputational damage, the department cited Alsup’s ruling. It is not clear how much the U.S. government will cancel its mass loans.

Nicholas Kent, the chief officer for Career Education Colleges and Universities, said that despite Alsup’s decision to discharge loans, he did not agree with the stay. Washington Examiner That