Federal court rules against DeVos in for-profit fraud case
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Source: Associated Press
Maria Danilova, Associated Press
Updated 6:40 pm CDT, Thursday, September 13, 2018
WASHINGTON (AP) — Education Secretary Betsy DeVos' move to delay Obama-era protections for students defrauded by for-profit colleges was dealt a setback when a federal judge found her actions to be "arbitrary and capricious."
U.S. District Judge Randolph Moss ruled Wednesday in a lawsuit challenging the delay that had been filed by Democratic attorneys general from 19 states and the District of Columbia and former students, finding that DeVos' actions were unlawful.
The case centered on the borrower defense rule, which allowed defrauded students to have their student loans forgiven. The rule was to have taken effect on July 1, 2017. DeVos had argued those rules created "a muddled process that's unfair to students and schools."
But Moss found inconsistencies in DeVos' rationale for freezing the rule.
Read more: https://www.chron.com/news/politics/article/Democratic-AGs-win-case-against-US-Education-13226414.php
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