Court: Gov’t violated privacy law for defrauded students

Court: Gov't violated privacy law for defrauded students Share this storyCourt: Gov't violated privacy law for defrauded students

WASHINGTON — A federal court has ruled that the Education Department violated privacy laws with regard to students defrauded by the Corinthian for-profit college chain.

In a break with the Obama administration policy, Education Secretary Betsy DeVos announced in December that some students cheated by the now-defunct schools would only get a part of their federal student loan forgiven. A California district court ruled late Friday that the department’s use of Social Security Administration data in order to calculate loan forgiveness violates the Privacy Act. The court ordered the Education Department to stop the practice and stop debt collection from these students.

The court also said that it needs to hear more from both sides in order to decide whether or not to compel the agency to return to full loan forgiveness.