On Thursday, about one-third of US states sued US Department Of Education and its Secretary Betsy DeVos for the latest suspension of rules that would quickly cancel debts owed by students defrauded by Corinthian Colleges Inc. and some other not for profit institutions.
Last month, DeVos pushed to suspend the rules, which will come into force on July 1st, saying they must reset. 18 US states, including Massachusetts and the District of Columbia, reported in a suit at a US District Court in Washington, D.C the Department of Education violated the federal law to notify the delay in the limited public announcement and the privilege to comment.
DeVos defense
DeVos, who is a Republican, said that to quicken the debt cancellation process would put the taxpayers at a significant cost, and delays are needed when legal proceedings in California are lawfully operating through the legal system.
According to the press secretary of the Department of Education Liz Hill, the ideologically driven legal challenge, the state’s lawyers say to regulate first and then ask for legal questions on a later date. She added that the rules were approved through a largely politicized procedure.
The rules were endorsed during the last days of Democratic President Barack Obama's administration, which renewed the federal student loan. When Corinthia's profit-making chain collapsed in the following the probe after the post-employment rate of employment in the year 2015, the administration began to draw up rules to assist students who accumulated overdue loans they had taken from Corinthian teaching.
Obama's profit-seeking career for students
In an attempt to keep the students from getting loan disbursement they could not pay back, Obama is explicitly planning a profit-seeking career fund that promises students that they will get jobs after their graduation from college and can charge high amount of fee.
Connecticut, California, Delaware, Illinois, Hawaii, Iowa, Minnesota, Maryland, New York, North Carolina, New Mexico, Oregon, Pennsylvania, Rhode Island, Vermont, Virginia and Washington’s attorney generals signed the petition against the Education Department on Thursday.
They said that the Department and DeVos used pending litigation as a mere excuse to override the rules and be replaced with diluting student rights and protections.
The student loan industry which is about $ 1.4 trillion became a boiling point in the presidential election campaign last year. Democrats seek to maintain Obama's reforms, while Republicans, such as the then candidate, President Donald trump, stated that government should hands-off student lending.
