Former beauty school students may pursue claims that the U.S. Department of Education defied federal law by collecting student loans it knew may have been obtained fraudulently, a federal appeals court determined.
The U.S. Court of Appeals for the Second Circuit revived a suit by former students of Wilfred Academy over the Department of Education’s alleged failure to abide by two federal laws requiring student loan holders to be told that their loans could be discharged if issued under fraudulent premises.
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