For Profit-College Fraud Claims Could be Held Up for Months
Tens of thousands of former students who say they were swindled by for-profit colleges are being left in limbo as the Trump administration delays action on requests for loan forgiveness. The administration is waiting until it can rewrite Obama-era rules designed to protect those who say they were defrauded.
The for-profit college industry had sought a rewrite of the rules, and found allies in the White House and Education Department. Education Secretary Betsy DeVos has hired a former DeVry University official to oversee investigations of fraud at the colleges.
The agency is sitting on more than 65,000 unapproved loan-forgiveness claims.
Earlier this year, President Donald Trump agreed to pay $25 million to settle lawsuits contending his now-defunct Trump University misled consumers.
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