Dept. of Education to Cancel $150M in Student Loan Debt After Court Order - NBC 10 Philadelphia
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Dept. of Education to Cancel $150M in Student Loan Debt After Court Order

Education Secretary Betsy DeVos had canceled memos imposing tougher rules on for-profit colleges and student loan debt, but lost a court challenge

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    Dept. of Education to Cancel $150M in Student Loan Debt After Court Order
    Jacquelyn Martin/AP, File
    In this Feb. 22, 2018, file photo, Education Secretary Betsy DeVos speaks during the Conservative Political Action Conference at National Harbor, Md.

    The U.S. Department of Education said Thursday it is cancelling $150 million in students loans connected to for-profit colleges, complying with a court order that essentially forced the Obama-era move to go through, NBC News reported.

    The discharge of loans affects about 15,000 students who went to colleges that shuttered between Nov. 1, 2013 and Dec. 4, 2018, including Corinthian Colleges, Inc.

    Education Secretary Betsy DeVos had canceled memos imposing tougher rules on for-profit colleges and student loan debt, but lost a challenge brought by states including California.

    The office of Sen. Patty Murray, D-Wash., the top Democrat on the Health, Labor, Education and Pensions Committee, said more than 100,000 students have outstanding claims. Murray said in a statement that, "it's disappointing that it took a court order to get Secretary DeVos to begin providing debt relief to students left in the lurch by predatory for-profit colleges."

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    (Published Tuesday, March 19, 2019)