Courts rule $150 Million for student loan forgiveness; Sorry, Mrs. DeVos

Published: Last Updated on
tcc degree
Listen to this article here


  • US Education Secretary Betsy DeVos tried reversing the Obama Policy and student payouts. 
  • Federal Courts rule $150 Million in favor to repay former students who attend shady for-profit colleges.
  • For-profit schools had been notorious for targeting low-income students of color.

By Nehemiah Frank, Executive Editor 

Cloudy skies are now clear for some 15,000 current and former students today. The US Department of Education was defeated in court, canceling $150 million of student loan debt for students who attended shady for-profit colleges.

The federal court ruling is especially favorable for students of color as they had been the targets of for-profit schools. 

Thanks to the Obama administration, the borrow defense rule held up in court.

Betsy DeVos, like so many other Trump appointees, was put in power to roll back Obama policies that actually helped Americans.

Her administration created policies to block the “borrow defense rule”, which allowed for borrowers who attended schools that misled them or engaged in other misconduct to be forgiven. The rule also includes for-profit schools that closed. 

The District of Columbia and 19 other states sued the US Secretary of Education, Betsy DeVos, for delaying the borrower rule which went into effect back July 1; however, students never received reimbursements. 

A federal judge, back in October, ordered the department to start forgiving students’ debt.

Now that the courts have decided, 15,000 people will be repaid.