DeVos to cancel $150M in student loan debt after court loss

The Education Department on Thursday announced that it will be canceling $150 million in student loans, upholding an Obama-era policy that Secretary Betsy DeVosElizabeth (Betsy) Dee DeVosThe Hill's 12:30 Report — Presented by MAPRx — Biden, Sanders to share stage at first DNC debate The Hill's Morning Report — Uproar after Trump's defense of foreign dirt on candidates DeVos aide overseeing student loans quits board amid scrutiny MORE has long fought to overhaul.

DeVos had previously proposed to restrict “borrower defense” claims brought by students who had been enrolled in schools that were either closed or made false promises, but a federal judge ruled in September that DeVos’s efforts to nix the 2016 regulations from taking effect was illegal.

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The department said in a press release that it has so far identified roughly 15,000 borrowers who are eligible for an automatic “closed school” discharge as a result of the court rulings siding with the students.

Out of the $150 million in student loans the department has announced will be automatically discharged, $80 million is attributable to loans taken out by borrowers who attended Corinthian Colleges, a for-profit educational chain that closed its schools in 2015. 

Borrowers whose schools closed between Nov. 1, 2013, and Dec. 4, 2018, will account for the remaining $70 million.

The department confirmed that it will begin notifying borrowers of the move on Friday.

Some discharges may take longer than 90 days to complete, the announcement also states, and borrowers will be informed by loan holders of which specific loans will be forgiven.