Betsy DeVos

“Students were failed": Trump admin cancels 1,500 student loans

Secretary of Education Betsy DeVos
Betsy DeVos Photo: Tom Williams/CQ Roll Call/Getty Images

The Department of Education will cancel federal loans for about 1,500 defrauded students at two shuttered art institutions, reports the New York Times.

Why it matters: This represents a "rare victory" from Secretary of Education Betsy DeVos, who has limited relief programs for students who claim they've been deceived by the "career-school chain," writes the Times.

Trump judicial nominee aided in illegal debt relief effort under DeVos

Menashi himself.
Photo: Tom Williams/CQ-Roll Call, Inc via Getty Images

Steven Menashi, an appeals court nominee up for a confirmation vote on Thursday, aided in an illegal loan forgiveness effort by the Department of Education, according to a memo obtained by the New York Times.

What we know: Menashi helped craft the plan while serving as acting general counsel under Education Secretary Betsy DeVos. The effort sought to use private Social Security earnings data to deny debt relief to individuals that had been scammed by for-profit colleges. The strategy was axed by a federal judge who ruled that it violated privacy laws.