Documents obtained by NPR shed new light on a bitter fight between defrauded student borrowers and U.S. Education Secretary Betsy DeVos.
These borrowers — more than 200,000 of them — say some for-profit colleges lied to them about their job prospects and the transferability of credits. They argue they were defrauded and that the Education Department should erase their federal student loan debt under a rule called "borrower defense."
DeVos disagrees: She says most student borrowers still got value from these schools and deserve only partial relief from their federal loans.
Now, internal Education Department memos obtained by NPR show that career staff in the department's Borrower Defense Unit came down firmly on the side of defrauded borrowers.
The memos show this unit reviewed thousands of borrower complaints against now-defunct, for-profit colleges, including Corinthian Colleges and ITT Technical Institute. Just weeks before DeVos was sworn in as secretary, the unit recommended to the department's political leadership that these borrowers deserve no less than full relief from their student debts.
One memo, dated Jan. 9, 2017, begins: "Corinthian Colleges, Inc. ('Corinthian') consistently represented that all graduates obtained jobs after graduation or, relatedly, that its students were guaranteed employment after graduation. These representations were false and misleading. Accordingly, the Borrower Defense Unit recommends full relief for Corinthian borrower defense (BD) applicants."
Another memo, dated the next day — Jan. 10, 2017 — arrived at the same conclusion for California-based students who allege they were lied to by ITT Technical Institute, and likewise recommended full relief.
A Counternarrative to DeVos' Position
Until now, these internal department memos have been hidden from public view. Lawmakers had previously requested access to them, but DeVos and her department refused to hand them over. Instead, DeVos has criticized the Obama administration for lack of due diligence in processing borrower defense claims. In a Nov. 7 letter to Rep. Bobby Scott, D-Va., the chairman of the House education committee, DeVos wrote, "the clear intent of the prior Administration was to eventually provide blanket relief without review of the facts and evidence."