Judge Orders Debt Relief for Some Students

A federal judge has ordered that the Department of Education immediately begin to comply with an Obama-era rule that grants automatic loan forgiveness to defrauded students who attended schools that were closed while they were enrolled. Judge Randolph Moss denied a request from a group that represents for-profit colleges to postpone the implementation of this rule, which also mandates that schools cannot force students into arbitration or pursue class action lawsuits against these institutions. Over 1,400 schools closed between 2013 and 2015, CNN reports. And some 106,000 people have filed fraud claims that are awaiting processing by the Department of Education.