On Friday, EducatJanuary 20y 20cretary Betsy DeVos announced that she would forgive 1500 students loan. Last year pair of for-profit colleges are shut down due to which the Education Secretary DeVos was criticized over her handling of federal loan forgiveness programs. So after the lawsuit, Betsy said that she would forgive the loans of more than 1500 students who were attending the two colleges that were closed.
According to the Associated Press
DeVos said that Students who attended the Illinois Institute of Art and Art Institute of Colorado between Jan 20, 2018, to June 29, 2018, can have their loan canceled. In recent years, there are almost a series of for-profit institutions that have closed down. The student went to nearly 24 other schools, which were owned by the same company Dream Center. As per the Associated Press, A federal lawsuit is faced by the Education Department for illegal release of federal student aid to the struggling schools.
The suits say that the schools were allegedly allowed to keep operating without telling students about the trouble that the college was facing because this might lose the approval for funding. On Friday, the department shifted the blame to the higher learning commission. The department said that the accrediting group has assigned the schools a developed and improperly defined “accreditation status.”
On October 22, the Education secretary was sued by the former Dream Center school students. The students demanded loan forgiveness and other measures, and DeVos fulfilled all these demands. Eric Rothschild also said that the department is taking action to cancel the illegal debt that is issued for the students of the Dream Center. The suit which was brought by the former Dream Center students was an attempt to fix the unlawful and conceal the previous misconduct.