Alsup Slams Dept. Of Education's Student Loan Relief Deal

Law360 (October 20, 2020, 6:19 PM EDT) -- U.S. District Judge William Alsup rejected a class settlement Monday between the U.S. Department of Education and student borrowers seeking forgiveness from "predatory" for-profit college loans, after Education Secretary Betsy DeVos sent perfunctory denial letters he said undermine the proposed settlement and "hang borrowers out to dry."

In denying the settlement, the California federal judge ordered the borrowers and the department to resume discovery immediately and show cause "why the secretary should not be enjoined from further perfunctory denials." He had given preliminary approval to the deal in May after the department said it would process a backlog of 170,000 student...

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