Judicial Watch Sues Education Department over Cover up Of Increasing Student Loan Failures

Judicial Watch announced that it today filed a Freedom of Information (FOIA) lawsuit in the U.S. District Court for the District of Columbia against the U.S. Department of Education seeking records relating to then Obama administration’s “coding error” that resulted in masking that most borrowers are failing to pay down their federally-subsidized student loans (Judicial Watch v. U.S. Department of Education (No. 1:17-cv-00501)).

The Obama administration’s Obamacare legislation also included provisions that resulted in the federal takeover of the student loan industry, which radically increased taxpayer subsidies of higher education loans.

The Education Department acknowledged in early January that the coding error resulted in wildly inaccurate College Scorecard repayment rates. The significance is substantial, according to The Wall Street Journal:

The department played down the mistake, but the new average three-year repayment rate has declined by 20 percentage points to 46%. This is huge. It means that fewer than half of undergraduate borrowers at the average college are paying down their debt.  Read more…

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