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Department of Education Canceling Student Debt for 16,000 People Who Attended For-Profit Schools

Department of Education Canceling Student Debt for 16,000 People Who Attended For-Profit Schools

“The relief comes out to $415 million in total.”

This is the Biden administration throwing a bone to all the leftists clamoring for the cancellation of all student debt.

CNBC reports:

Education Department forgives $415 million in student debt for borrowers who attended for-profit schools

The U.S. Department of Education has announced it will cancel the student loans of nearly 16,000 borrowers who attended certain for-profit schools, including DeVry University. The relief comes out to $415 million in total.

“The Department remains committed to giving borrowers discharges when the evidence shows their college violated the law and standards,” said Education Secretary Miguel Cardona, in a statement Wednesday.

“Students count on their colleges to be truthful,” Cardona added. “Unfortunately, today’s findings show too many instances in which students were misled into loans at institutions or programs that could not deliver what they’d promised.”

The department found that between 2008 and 2015, DeVry misled students by claiming that 90% of its graduates who actively seek employment obtained jobs in their field of study within six months of graduation. In reality, the job placement was closer to 58%, according to the department.

Donna Shaults, a spokesperson for DeVry University, said the school’s board and leadership have changed since the federal government first made the allegations.

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Comments

The Gentle Grizzly | February 20, 2022 at 12:46 pm

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DeVry misled students by claiming that 90% of its graduates who actively seek employment obtained jobs in their field of study within six months of graduation. In reality, the job placement was closer to 58%, according to the department.

How much of that disparity is on DeVry and how much of it is:

a) students who did not interview well?

b) employers not hiring white Americans in favor of filling quotas and hiring H1Bs?

“This is the Biden administration throwing a bone to all the leftists clamoring for the cancellation of all student debt.”

Let me politely disagree. My son is a party to this action, having wasted his GI Bill benefits on one of these schools a decade ago.

This is the culmination of a court proceeding that has been going on for nearly ten years. It’s not a Biden thing, it’s not even an Obama thing.

Many of the students affected dutifully made their loan payments, until notified of the court action. Even then, some of them continued (the savvier ones didn’t).

The school handed out passing grades regardless of the student’s demonstrated level of proficiency. (Many students, including my son, believed they were learning skills to a level that would make them employable, when in fact they were not.)

The school then failed to provide the “placement service” for which many students chose them over other schools, instead referring all students to the same one or two headhunting firms that were already slammed.

In my opinion, this action was fairly taken and the result was just. Also in my opinion, if an identical followon action were taken on behalf of students “graduating” with styrofoam majors from our hallowed halls of higher education, I would immediately Move My Zig for Great Justice.

    The Gentle Grizzly in reply to henrybowman. | February 20, 2022 at 3:41 pm

    Years ago, I read an article about the various trade type schools. ITT Tech got taken to the woodshed, but DeVry was – at least back then – very highly thought of by employers, and sent out graduates with both fine training and with some liberal arts (the good kind) thrown in.

    If they have indeed deteriorated to being a diploma mill, it’s a shame.

      With very few exceptions, the vast majority of “non-profit” colleges and universities today are just diploma mills, that includes many of the ivies. They have gutted standards after pushing grade inflation for decades , and now they are literally teaching that maths is racist and any answer you like is correct. Yellow? Trout? Blippety boppety boo? Yep, that’s the answer to that maths problem! Here’s your degree. Better spit that gum out before you try to walk to the podium, you know how that works out if you don’t.

    healthguyfsu in reply to henrybowman. | February 22, 2022 at 12:49 pm

    So why is it the government’s job to pay this back? Shouldn’t the class action go to the owners of the for-profit schools??? even if it bankrupts their corrupt asses?

So I don’t get relief because I went to a good school? I’d be better off if I had made worse choices!. Sure. Makes perfect sense.

“Canceling the debt” makes it sound like it only affects the debtor. It also means that all the rest of us pay those bills.

    henrybowman in reply to David in Cal. | February 21, 2022 at 9:30 am

    Well, I’m sympathetic to this argument, too. In my mind, the DOE should be going to DeVry and those others for reimbursement of that amount, not just lazily sticking the taxpayers with it. It’s the college that needs to take the haircut, not the taxpayer.

The Gentle Grizzly | February 21, 2022 at 6:30 am

Question: is this a trial balloon thing? If they can get by with forgiveness of loans to bad trade schools, is loan forgiveness for degrees in nonsense next?

These institutions should be paying back the loans for their own fraud.

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