For profit-college fraud claims could be held up for months

In this Sept. 7, 2017 photo, Education Secretary Betsy DeVos speaks at George Mason University Arlington, Va., campus. Students who claim to have been defrauded by for-profit colleges may have to wait up to six more months before the Department of Education rules on their claims, according to a court document reviewed by the Associated Press. (AP Photo/Jacquelyn Martin) In this Sept. 7, 2017 photo, Education Secretary Betsy DeVos speaks at George Mason University Arlington, Va., campus. Students who claim to have been defrauded by for-profit colleges may have to wait up to six more months before the Department of Education rules on their claims, according to a court document reviewed by the Associated Press. (AP Photo/Jacquelyn Martin)

By Associated Press September 12, 2017 1 min read

WASHINGTON (AP) – Tens of thousands of former students who say they were swindled by for-profit colleges are being left in limbo as the Trump administration delays action on requests for loan forgiveness. The administration is waiting until it can rewrite Obama-era rules designed to protect those who say they were defrauded.

The for-profit college industry had sought a rewrite of the rules, and found allies in the White House and Education Department. Education Secretary Betsy DeVos has hired a former DeVry University official to oversee investigations of fraud at the colleges.

The agency is sitting on more than 65,000 unapproved loan-forgiveness claims.

Earlier this year, President Donald Trump agreed to pay $25 million to settle lawsuits contending his now-defunct Trump University misled consumers.