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Education Department Secretary in hot seat again over defunct college loans

A Congressional committee wants to know why defrauded students can’t get complete relief

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Photo (c) Khongtham - Getty Images
The Committee on Education and Labor wants the Secretary of Education, Betsy DeVos, to further explain her new formula towards processing claims by bamboozled borrowers from now defunct Corinthian Colleges and ITT Technical Institute

The Committee’s pushback came early Monday, less than 48 hours before DeVos is scheduled to face the Committee on Education and Labor again. 

After receiving DeVos’ new plan, which she claims is “a scientifically robust statistical methodology to determine harm,” regulators wasted no time in firing a letter back telling the Secretary that the methodology of her formula is not only absurd, but it makes it darn near impossible for borrowers from Corinthian and ITT to ever qualify for full relief from those debts.

“The importance of this formula for hundreds of thousands of borrowers demands the Department be as transparent as possible and provide comprehensive data and methodology information to the public,” the members wrote. 

“This Administration’s pursuit of a partial relief formula runs counter to both recommendations of career Department staff and the policies of the previous Administration, and we fear will result in defaulted borrowers continuing to be saddled with debt that predatory colleges mislead them into incurring based on the false promise that their education would be an investment in their future.”

The shell game continues

It was only six weeks ago that Committee Chairman Bobby Scott (D-VA) caught the Education Department quietly taking down the last plan that DeVos presented and replacing it with another version. And Scott is determined to find out why DeVos is keeping her charade going.

“The importance of this formula for hundreds of thousands of borrowers demands the Department be as transparent as possible and provide comprehensive data and methodology information to the public,” the members wrote. 

“This Administration’s pursuit of a partial relief formula runs counter to both recommendations of career Department staff and the policies of the previous Administration, and we fear will result in defaulted borrowers continuing to be saddled with debt that predatory colleges mislead them into incurring based on the false promise that their education would be an investment in their future.”

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