This month, in a victory by and for student loan borrowers, a court ordered that the Department of Education had illegally delayed giving effect to an important rule from 2016 designed to protect student loan borrowers and taxpayers from school closures and misconduct.  The court’s order meant that the rule—often called the 2016 “Borrower Defense” […]

By the Project on Predatory Student Lending at the Legal Services Center of Harvard Law School, which is representing the plaintiffs in Calvillo Manriquez v. DeVos. This post originally appeared on https://predatorystudentlending.org/updates/update-preliminary-injunction-granted-what-it-means-and-what-happens-next/. On May 25, 2018, a federal court in San Francisco granted former Corinthian borrowers’ motion for a preliminary injunction in Calvillo Manriquez v. DeVos, ordering the Department of […]

As recently as this April, we explained that Congress chose not to roll back the important protections for defrauded student loan borrowers provided by the Department of Education’s borrower defense rules. Unfortunately, the Department has not only delayed implementation of the bulk of the borrower defense and gainful employment rules, but has also announced that […]

Advocates for student loan borrowers breathed a sigh of relief on March 30, when the deadline passed for Congress to introduce a resolution to roll back the new “borrower defense” rules.  These rules are designed to protect students and taxpayers from harm by predatory schools.  After rumblings from Washington that these rules would be in […]

According to the IRS, if you went to a Corinthian school and had your loans canceled under the borrower defense rule, you should not owe taxes on the canceled amount. Unfortunately, we have learned that the Department of Education and its servicers sent IRS forms 1099-C to Corinthian students whose loans were canceled in 2016. […]

On Friday, the U.S. Department of Education announced final regulations to protect federal student loan borrowers and taxpayers against closures and misconduct by predatory schools like we saw with the now closed Corinthian Colleges. The regulations, most of which are scheduled to go into effect July 1, 2017, include significant amendments to the rules governing borrower defenses to […]