Saturday, August 10, 2019

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The decision involves schools owned by the Dream Center company, which collapsed last year and shuttered campuses across the nation, following several other major for-profit college operators that have failed in recent years.
DeVos has faced mounting criticism over her handling of federal loan forgiveness programs. The programs were expanded by the Obama administration after the collapse of the Corinthian Colleges, which was accused of lying to students to get them to enroll.

Under DeVos, the Education Department has stopped processing claims from students who say they’ve been defrauded by their schools, leaving tens of thousands of borrowers in limbo as they seek loan cancellations. DeVos has also moved to tighten eligibility rules, prompting backlash from Democrats and a flurry of lawsuits from students and advocacy groups.

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In the latest case, a federal lawsuit against the Education Department said the department illegally released federal student aid to the Colorado and Illinois schools even after the schools lost their accreditor’s seal of approval. Losing approval should have made the schools ineligible for funding, the suit says, but instead they were allowed to keep operating without telling students that the institutions were in trouble.
But on Friday, the department shifted blame to the accrediting group, the Higher Learning Commission, saying it assigned the schools a “newly developed and improperly defined accreditation status.” The department said it believed the schools should not have lost their accreditation and that, by revoking it, the accreditor left students with tarnished credits that might not be accepted by other schools
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