2 Borrowers Sue Over Forgiveness of Student Loans

"Frustrated with the slow resolution of loan forgiveness claims at the Department of Education, two borrowers have filed a lawsuit against Education Secretary Betsy DeVos and loan servicing company Navient in federal court," Inside Higher Ed reports.

"The lawsuit, filed Sunday by two former students of the for-profit Sanford-Brown Institute, cites federal and state law in seeking forgiveness of their federal and privately held loans.

Sanford-Brown was owned by the Career Education Corporation chain; it closed in 2015. The borrowers say the college misrepresented its career training program as well as the employment prospects of graduates. Instead of finding gainful employment, they say they were harmed by their attendance and the student loan debt they took out to do so. In addition to violations of law found by state regulators, the lawsuit cites the contract signed by the borrowers with Sanford-Brown in arguing for debt relief."

NASFAA's "Headlines" section highlights media coverage of financial aid to help members stay up to date with the latest news. Inclusion in Today's News does not imply endorsement of the material or guarantee the accuracy of information presented.

 

Publication Date: 11/14/2017


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