California Attorney General Xavier Becerra was among the officials, all Democrats, who filed the suit. "Our investigation, as well as inquiries conducted by Congress, have demonstrated how some of these institutions seek to maximize their access to federal taxpayer dollars by luring in students with misleading promises about the quality of the education they will receive and the prospects for their futures following completion of a program". This rule applies to any school closed in or after November 2013, including the closed Corinthian Colleges in Washington state, and allows for the discharge of an estimated $381 million in federal student loans.
The rule, which was slated to go into effect this month, was aimed at making sure students of such colleges received debt relief.
"With the rise of this type of student debt", his email said, "we are seeing a rise in the amount of scams and fraud occurring around promises to relieve students from the heavy burden with which these schools have saddled them".
The Obama administration's efforts "missed an opportunity to get it right", she said. DeVos said they created "a muddled process that's unfair to students and schools". It's time to take a step back and make sure these rules achieve their goal: helping harmed students.
According to the Department of Education, the rules will be reviewed by the end of 2017.
Education Department spokeswoman Elizabeth Hillcalled the lawsuit by attorneys generals "ideologically driven" and said the now-delayed rules suffered from "substantive and procedural flaws" that need to be addressed.
The case could be bolstered by a federal appeals court ruling in a similar case. On Monday, the U.S. Court of Appeals for the D.C. Circuit ruled that Environmental Protection Agency administrator Scott Pruitt's 90-day delay of an emissions rule was illegal and ordered the administration to implement the regulation. Madigan was among a coalition of attorneys general who filed a motion to intervene in the CAPPS case last month to defend students and taxpayers from the legal challenge to the Borrower Defense Rule brought by a trade association representing for-profit schools.
Public Citizen and the Project on Predatory Student Lending filed their lawsuit on behalf of Meaghan Bauer and Stephano Del Rose, former students of the for-profit New England Institute of Art (NEIA) in Brookline, Mass.
Prohibiting schools participating in the Direct Loan Program from using mandatory pre-dispute arbitration agreements or class action waivers to resolve claims with students.
Heald College, one of the Corinthians College schools, was eventually fined almost $30 million by the federal Department of Education for misleading statements about employment rates of graduates. DeVos instructed her department not to enforce the new rules and said that she would appoint a committee to revise them.
State attorneys from California, Connecticut, D.C., Delaware, Hawaii, Illinois, Iowa, Maryland, Minnesota, New Mexico, New York, North Carolina, Oregon, Pennsylvania, Rhode Island, Vermont, Virginia, and Washington joined MA as plaintiffs in the lawsuit against DeVos and the Department of Education.
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