The attorney generals of California, Massachusetts, New York, and Illinois have filed a lawsuit against the Department of Education and its head, Education Secretary Besty DeVos, for refusing to process the debt forgivingness claims of thousands of Californians who attended for-profit colleges.
More than 25% of all pending applicants reside in California.
A report that was released earlier this week spotlighted that the Education Department has not processed any forgiveness claims since the new administration took office nearly 11 months ago. There are currently tens of thousands of unprocessed applications from students of former for-profit institutions, like Corinthian College, who were duped into borrowing money.
“What Secretary DeVos is doing is unconscionable,” said Xaiver Becerra, the attorney general of California, in a statement. “After having their American Dreams stolen by a so-called higher education institution, Corinthian students are now being denied critical relief by a Secretary of Education hostile to their plight. It is hard to believe that we are forced to sue the Department of Education to compel Secretary DeVos to carry out the Department’s legal duty and help these students rebuild their lives. We will work to ensure that all who seek a college degree can do so without worrying about unscrupulous for-profit purveyors of a sham college education.”
A copy of the complaint filed by the attorney general of California can be accessed here. In the complaint, he chastises the Education Department for not moving fast enough.
The Department’s assurances of forbearance and collections stoppages have not eliminated the harm to students waiting for the Department to process their pending claims. While students wait, interest continues to accrue on their federal student loans. For students in default on their loans prior to submitting a borrower-defense claim, the Department continues to negatively report their loans to consumer reporting agencies.
