Betsy DeVos Sued For Failing To Implement Automatic Student Loan Forgiveness

Education Secretary Betsy DeVos faces a new lawsuit filed on Tuesday. It alleges the Dept. of Education has failed to comply with the Borrowers Defense rule, a student loan forgiveness program that would automatically cancel debt for borrowers whose schools have closed

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A ruling by a federal judge last month seemed like it would end a long legal battle between Education Secretary Betsy DeVos and tens of thousands of student loan borrowers waiting to have their debts canceled. But as of Tuesday, there is a new round of litigation.

A group called the Housing and Economic Rights Advocates is suing DeVos, claiming the Department of Education has failed to comply with Borrower Defense regulations, as it was ordered to do, and that it continues to collect on loans that should be discharged.

The Obama-era rule was designed to cancel loans of borrowers who were defrauded by for-profit colleges abruptly shut down before students could earn their degrees.