WASHINGTON — The Department of Education has begun notifying some former Corinthian Colleges students that it will forgive only one-half or less of their federal student loans, even though the students were defrauded by the now-defunct schools, The Associated Press has learned.
The action is part of Education Secretary Betsy DeVos’ push to ease regulations governing for-profit schools. DeVos says she wants to protect taxpayers’ money, but critics say the Trump administration has deep ties to for-profit colleges and is putting industry interests ahead of students.
Two weeks ago, Sarah Dieffenbacher, a California health care worker, received a letter saying the agency would discharge only 50 percent of her student loans. The mother of four had borrowed about $67,000 to train as a paralegal at Everest college in Ontario, California, part of the Corinthian chain, but was unable to land a job in the field.
In her first interview since receiving the agency’s decision, Dieffenbacher told the AP on Thursday that the decision was utterly unfair.
“I think it’s an insult to my intelligence. I think it’s a kick in my face. I think it’s degrading,” Dieffenbacher said. “I received no valuable education from them.”
Alec Harris, Dieffenbacher’s attorney with the Project on Predatory Student Lending at Harvard University, said: “There is no justification for making Sarah and others pay for having been cheated. The Department’s actions are incoherent and vindictive.”
Department press secretary Liz Hill defended the agency’s decision.
