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December 14, 2017

Massachusetts Attorney General Maura Healey is suing Education Secretary Betsy DeVos for not forgiving the loans of former students at a for-profit college chain.

Healey argues the Education Department has failed to discharge loans to students defrauded by Corinthian Colleges. More than 7,000 Massachusetts students were attending Corinthian campuses in Boston and Chelsea when the for-profit chain collapsed.

In the suit, Healey charges the Department has garnished students' wages and intercepted their tax refunds to repay the loans.

“Secretary DeVos and her team continue to demonstrate that they would rather give a free pass to predatory schools than give struggling student borrowers the relief they deserve,” Healey said in a statement. “Today we call on the U.S. Department of Education to begin discharging the loans of students who were cheated and immediately halt their illegal debt collection practices.”

Earlier this week, a government watchdog urged the Department to forgive the loans of tens of thousands of former Corinthian students.

Healey was joined by the attorney generals of Illinois and New York in the complaint. A similar suit has been filed by the California attorney general. 

DeVos has called these lawsuits ideologically driven and suggested that forgiving the loans would cost taxpayers billions of dollars.

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