Betsy DeVos cancels $150 million of student loan debt after losing court battle
The Department of Education said it will cancel $150 million of student loan debt, impacting about 15,000 people whose schools closed.
The Obama-era borrower defense relief program – which essentially ground to a halt under Education Secretary Betsy Devos – provided a path for people to seek forgiveness for federal student loans if a shuttered school violated specific laws or misled students.
Those eligible for loan forgiveness must have been enrolled at the school when it closed and not enrolled at another Title-IV school within three years of the previous school’s closing, according to the Education Department.
PLUS loans – which parents took out on behalf of children – could also be eligible for discharge.