The education department on Wednesday agreed to settle the defense claims of about 200,000 borrowers, and a lawsuit has been filed against the department.
The agreement will automatically provide student loan waivers for those involved. The agreement states that “for the purpose of this settlement, the presence in one of these schools justifies the presumptive relief, based on strong indications of substantial misconduct by the listed schools, whether credibly complained or proven in some cases, and the high rate of class members associated with the listed schools.” . ” Institutions are for-profit colleges and universities, many of which have closed.
Education Secretary Miguel Cardona has issued the following statement on the proposed settlement, which still needs to be approved by a federal judge. “From day one, the Biden-Harris administration has worked to address long-term issues related to the borrower’s defense system. We are pleased to work with the plaintiffs to reach an agreement that will provide billions of dollars in automatic relief to approximately 200,000 borrowers and we believe that the plaintiffs’ claims will be resolved in a fair and equitable manner for all parties, “Cardona said.
But career education colleges and universities, which represent for-profit colleges and universities, oppose the agreement.
“We are deeply concerned that in a rush to respond to external political pressure, the US Department of Education is trying to approve a wide range of demands, regardless of personal merit,” said Jason Altmeyer, President and CEO of CECU. “The department has an obligation to take more measurable measures to determine whether each student has been financially harmed on the basis of an illegal act. The court should look at the settlement agreement carefully so that it is fair to all parties involved. “