Abandoning relief: California A.G. sues DeVos-led education department over fate of diploma mill victims

State officials say they proved false advertisement by a for-profit university, but the Trump administration isn’t honoring victims’ claims

This is an extended version of a story that appears in the December 21, 2017, issue.

One of the biggest cheerleaders for profit-driven education is now standing in the way of helping victims of that system. At least that’s the gist of a lawsuit recently filed by California Attorney General Xavier Becerra.

In 2016, Becerra’s predecessor Kamala Harris won a $1.2 billion fine against Corinthian Colleges Inc.—better known around Sacramento as Heald College—for false and illegal advertisements that preyed on low-income communities. Corinthian went bankrupt, closing its numerous subsidiaries, including WyoTech and Western Business College.

According to the attorney general’s office, the Higher Education Act entitles student loan-borrowers to financial relief on their debts if they’re the victims of fraud. Becerra’s office noted that more than 50,000 such claims have now come in, at least 13,000 of which are from Californians.

After launching its own investigation into Corinthian, the Obama administration worked closely with various states’ officials to streamline the process for affected students. But, Beccera pointed out last week, that process has come to a grinding halt under Education Secretary Betsy DeVos. Becerra said DeVos had “inexplicably” stopped processing relief claims from victims of Corinthian.

“What Secretary DeVos is doing is unconscionable,” Beccera said in a statement. “After having their American dreams stolen by a so-called higher education institution, Corinthian students are now being denied critical relief by a Secretary of Education hostile to their plight.”

Beccera added that, prior to DeVos’ appointment by President Donald Trump, some 23,000 former Corinthian students had been granted relief, and their circumstances were identical to the claims that are now on hold.

U.S. Sens. Richard Durbin and Elizabeth Warren have also lambasted DeVos for halting relief claims. While the secretary has not yet publicly commented, she has been a longtime advocate for charter schools and for-profit universities.

“We will work to ensure that all who seek a college degree can do so without worrying about unscrupulous for-profit purveyors of a sham college education,” Becerra said.