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Betsy DeVos Suffers Major Setbacks In Student Loan Lawsuits

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Betsy DeVos berated by court for defying ruling

It’s been a bad few weeks for Betsy DeVos.

The Secretary of Education is battling multiple lawsuits brought by student loan borrowers, and she just suffered major setbacks in two of the cases.

Both of the lawsuits involve a program called Borrower Defense to Repayment. The program was formalized in 2016 under the Obama administration to provide student loan borrowers who were defrauded by their schools with a pathway to relief and possible student loan forgiveness. The process involves completing an application and submitting it to the Dept. of Education, along with supporting documentation and records. While the applications are pending, collections activities (such as wage garnishments or seizures of federal tax refunds) on the underlying student loans are supposed to be paused.


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