Healey and other attorneys general sue Betsy DeVos over student loan rules

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In a conference call with reporters, Healey said the Trump administration and DeVos have sided with the for-profit sector over students since "day one" and that borrower defense would protect students and taxpayers.

The federal lawsuit also comes just months after two groups of students from the Santa Fe University of Art and Design sued that for-profit school and its parent company, Laureate Education Inc., accusing it of fraud and breach of contract for deciding to shut down after the spring 2018 semester.

Last week, Ferguson sought permission from the court to join a separate lawsuit defending the borrower defense protections against a suit filed by a coalition of private schools that include for-profit colleges.

These defects became conspicuous during the Obama administration's final years, as hundreds of for-profit colleges collapsed amid accusations of widespread fraud. "With no public input or deliberation, the Trump (Department) of Higher (Education) suddenly and unlawfully canceled this rule". They argue that the Education Department can not stop enforcing existing regulations that don't align with their philosophy without due process. The Borrower Defense Rule, which was finalized last October, was scheduled to take effect July 1. Despite the postponement, DeVos said, "promises made to students under the current rule will be promises kept".

The states involved in the lawsuit against DeVos and the Department are Massachusetts, California, Connecticut, Delaware, Hawaii, Illinois, Iowa, Maryland, Minnesota, New Mexico, New York, North Carolina, Oregon, Pennsylvania, Rhode Island, Vermont, Virginia, Washington, and the District of Columbia.

"Across the United States, students and families are drowning in unaffordable student loan debt while predatory, for-profit schools rake it in", Massachusetts Attorney General Maura Healey tweeted. Elizabeth Warren (D-Mass.) issued her support of the states' legal challenge, tweeting, "Betsy DeVos might not like it, but her job is to serve students [and] if she won't do it, we will force her to do so".

Attorney General Bob Ferguson today filed a federal lawsuit to stop the U.S. Department of Education from delaying implementation of Obama-era rules that protect student loan borrowers from predatory and deceptive practices by higher education institutions. If that's the case, students and families who have been taken advantage of by these schools should follow this lawsuit closely, as the 18 states are seeking for the rules to take effect.

The rules would have forbidden schools from forcing students to sign agreements that waive their right to sue.

The lawsuit, however, said, in putting the rule on pause, the education department violated federal rules.

On June 14, DeVos announced she was delaying the borrower defense and gainful employment rules as part of a "a regulatory reset".

The rules were originally created to hold higher education institutions accountable for cheating students and taxpayers out of billions of dollars in federal loans.

DeVos also criticized the rules as "a muddled process that's unfair to students and schools", and she said she would establish a new rule-making committee to reconsider the matter. Data released by the Obama administration in January found that more than 800 programs across the country were failing to meet the rule's standards.

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