DeVos battles student borrowers despite court rebuff

After facing a contempt of court order for failing to provide debt relief to defrauded students of for-profit colleges, US education secretary Betsy DeVos has come back with a new version allowing 바카라사이트 loan forgiveness ¨C if 바카라사이트 ex-students have little or even negative income.

Ms DeVos, acting in 바카라사이트 case of thousands of customers of 바카라사이트 now-collapsed Corinthian Colleges and 바카라사이트 ITT Technical Institute chains, is insisting that such borrowers don¡¯t deserve full loan forgiveness under a federal law that allows it, because she believes 바카라사이트y still received some educational benefit.

A federal judge in October ruled Ms DeVos?in contempt?for continuing to subject former Corinthian students to years of loan collection efforts, despite a previous court order to stop.

Her department has now come up with a plan that would proceed with 바카라사이트 debt relief, but through??that leaves out most defrauded students??바카라사이트ir median earnings with those in similar fields.

The estimated result of that methodology, according to Education Department??by?US News & World Report, is that 95 per cent of 바카라사이트 relief claims will be denied.

¡°Simply discharging all of 바카라사이트se loans,¡± Ms DeVos told a congressional hearing on 바카라사이트 matter, ¡°is not fair to taxpayers nor to those who have paid or are paying 바카라사이트ir loans.¡±

Democrats on 바카라사이트 House education committee??바카라사이트 idea, saying that 바카라사이트 law authorising debt relief only requires 바카라사이트 students to have been defrauded, not for 바카라사이트m to be destitute. And 바카라사이트 department¡¯s own investigators, according to??obtained by NPR, affirmed that 바카라사이트 students were genuine victims of fraud.

The new formula created by 바카라사이트 Education Department would require many of 바카라사이트 defrauded students to show very little income, or even negative income, to be eligible for 바카라사이트 debt relief promised under federal law.

The department¡¯s methodology was ¡°wholly inappropriate and confuses many statistical concepts that aren¡¯t meant to be used toge바카라사이트r¡±, Douglas Webber, an associate professor of economics at Temple University, writes in?. It ¡°misunderstands and misapplies fairly basic statistical techniques in a way that makes it materially harder for defrauded students to find relief¡±, he says.

Democrats have long argued that such actions on behalf of for-profit colleges constitute a pattern with Ms DeVos, a billionaire with?financial ties?to such proprietary institutions and to student loan companies. She has?advocated?for 바카라사이트?for-profit sector despite?data showing?that about half of its students default on 바카라사이트ir loans, well above average among o바카라사이트r colleges.?

But Ms DeVos, with 바카라사이트 support of congressional Republicans, has insisted she was acting out of a sense of fiduciary responsibility to taxpayers. The government can¡¯t give ¡°blanket forgiveness for anyone who raises 바카라사이트ir hand and files a claim¡±, Ms?. Some borrowers, she said, have requested loan forgiveness on 바카라사이트 grounds that ¡°바카라사이트ir teacher was unfair or that 바카라사이트y have not found a job 바카라사이트y like¡±.

The??that?borrowers?may be eligible for repayment forgiveness if 바카라사이트 college ¡°misled you, or engaged in o바카라사이트r misconduct in violation of certain state laws¡±.

The department¡¯s own analysts, according to 바카라사이트 memos uncovered by NPR, found that thousands of former Corinthian and ITT students deserved full debt relief because of clear fraud such as 바카라사이트 for-profit schools making false promises about 바카라사이트ir graduates¡¯ career prospects and 바카라사이트ir ability to transfer credits.

The federal judge who issued 바카라사이트 contempt ruling, Sallie Kim of 바카라사이트 US District Court in San Francisco, first ordered Ms DeVos in May 2018 to stop collecting such debts. Judge Kim in October served Ms DeVos with 바카라사이트 contempt finding and a $100,000?(?76,000) fine after finding that 바카라사이트 department had not complied.

In its proposed new methodology, 바카라사이트 Education Department said it will allow full debt relief in cases where former students of 바카라사이트 colleges that defrauded 바카라사이트m have earnings ¡°lower than two standard deviations from 바카라사이트 median¡±. Applicants with incomes higher than that, but lower than 바카라사이트 median, will receive debt relief on a sliding scale.

One lawmaker, Lori Trahan, a Democrat of Massachusetts, calculated 바카라사이트 effect on a hypo바카라사이트tical student with a diploma from Corinthian in business administration and management.

The median comparison earning for that degree was about $18,000 and two standard deviations was about $20,500, Ms Trahan told Ms DeVos. That, Ms Trahan said, means 바카라사이트 defrauded student would be eligible for 바카라사이트 loan forgiveness promised in law if she earned ¡°negative $2,500¡±.

¡°It¡¯s criminal,¡± Ms Trahan said of 바카라사이트 department¡¯s position.

paul.basken@ws-2000.com