Department of Education Sued for Denying Student Loan Cancellation [Video]

The Department of Education has been served with a lawsuit that says it denied student loan forgiveness for those who paid for-profit colleges despite never graduating from high school.

Some for-profit schools illegally obtained federal funds in the name of students who had not received high school diplomas, and the students were then scammed out of money, according to the suit.

While the Department of Education has provided loan forgiveness for millions of Americans, the Legal Aid Foundation of Los Angeles, which filed the suit, says these students were left out of the loan cancellation plans without due process of law or considering the evidence from these borrowers.

“When it comes to higher education and financial aid, the issues we normally encounter that result in loan cancellation requests are those with a loan provider that has issued the student a high-interest loan with a complicated repayment path that sets off a red flag,” Alex Beene, a financial literacy instructor …