Joshua Cohen - The Student Loan Lawyer - Sat, Jun 27, 2020
“A detailed discussion of the Borrower Defense to Repayment (DTR).
This is a facebook live broadcast where Student Loan Lawyer Joshua Cohen explains how the government is weakening the DTR rules to benefit corrupt for-profit schools.”
“There are increasingly urgent signs that an unprecedented wave of student loan defaults could be arriving within a matter of months. A cratering economy and expanding pandemic are about to collide with the expiration of critical temporary student loan relief programs, and the end result could be catastrophic.
Here’s what’s going on.
The Economy Continues To Stagnate
The Pandemic Appears To Be Worsening
Federal Student Loan Relief Under The CARES Act Ends Soon
Temporary Private Student Loan Relief Expires Imminently
The Democratic-controlled House of Representatives recently passed the HEROES Act, which would extend the CARES Act’s student loan provisions by a full year to September of 2021. But Senate Republicans have rejected this bill. A coalition of over 60 organizations have also called on Congress to extend the CARES Act for student loan borrowers and forgive a substantial amount of student loan debt, although Senate GOP leaders have shown no interest in such broad relief to date.
Without a bipartisan solution, student loan borrowers will start falling into default at an ever-increasing rate. Time is running out.”
“THE TRUMP administration rejected a website that the Education Department's Federal Student Aid office designed to help students who have been defrauded by their colleges apply for loan forgiveness, arguing the tool made the process too easy, according to a whistleblower complaint.
The Trump administration recently rewrote the borrower defense rule and the new website was supposed to reflect the changes to the rule as well as streamline the application process so that claims could be processed more easily. As it stands, the Education Department has a backlog of roughly 200,000 claims.
But problems arose in late February, the whistleblower says, just days before the country went into lockdown to stem the spread of the coronavirus, when Diane Auer Jones, principal deputy undersecretary at the Education Department, asked to meet with the team in charge of developing the new borrower defense website and instantly pushed back on some of the more user-friendly features of the site. That's when the whistleblower, a career staffer who was involved in the development of the website, first lodged a complaint with the Office of Inspector General, noting that Jones, who is a political appointee, was not respecting the firewall that's supposed to exist between the Education Department and the Federal Student Aid office.”
- The Project on Predatory Student Lending - Harvard/LSC - Tue, Jun 9, 2020
“WASHINGTON, D.C. – A Trump administration rule that denies loan relief to many students cheated by their schools is deeply flawed and should be overturned, Public Citizen and the Project on Predatory Student Lending told a court today. The groups represent student borrowers in a lawsuit challenging the U.S. Department of Education’s new “partial relief” rule.
The rule sets forth the methodology by which the department decides whether and how much relief to give borrowers who have demonstrated that they were cheated by the schools they attended. Under the rule, most borrowers whose claims are approved receive only partial or no relief on their student-loan debt.
“Federal law allows students to seek cancellation of their federal student loans if the school they attended misled them. Since taking office, Education Secretary Betsy DeVos has made several failed attempts to block loan cancellation for students. This is the department’s second attempt at devising a “partial relief” methodology that denies most relief to defrauded student borrowers. The Project on Predatory Student Lending challenged the first rule, which was blocked by a federal court in May 2018, after the court concluded that the rule likely violated a federal law called the Privacy Act.
Under the new rule, issued in December 2019, the Department ignores evidence submitted by borrowers about how their schools’ actions harmed them. Instead, it bases its relief determinations solely on a comparison of the median earnings of recent graduates of the borrower’s program to the earnings of recent graduates of other programs the department deems similar. As the complaint explains, although the Department claims that its formula is based on statistics, it ignores basic statistical principles.”