The Department of Education Borrower Defense to Repayment has officially gone from being a blessing to a joke and now to essentially lights out.
Education Secretary Betsy DeVos has made it clear that she feels forgiving federal student loans for students who are victims of school fraud is wasteful. She’s said, “all one had to do was raise his or her hands to be entitled to so-called free money.” – Source
It’s not free money since these are students who were the victims of school fraud. The Department of Education is supposed to get the money back from the for-profit schools that seem to be the primary focus of fraud claims.
Reports out now say the Department of Education has no employees devoted full-time to investigating borrower,s’ complaints.
There are more than 105,000 applications for student loan debt relief that are dying a slow dusty death at Education while the department fights to reduce relief for students.
Even with clear cases of discharge of federal student loans for closed schools, the Department of Education is apparently sucking wind.
Just yesterday the Department was sued by Housing and Economic Rights Advocates (HERA) who just wants Education to follow their own rules.
HERA says, “Tens of thousands of borrowers who attended approximately 1,400 campuses that closed from November 1, 2013 until three years prior to the filing of this Complaint are presently entitled to have their federal student loans discharged without submitting an application.”
