California supports lawsuit against Betsy DeVos over Corinthian Colleges fraud

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California and seven other states will support a lawsuit against Betsy DeVos, alleging students are being denied debt relief after being defrauded by Corinthian Colleges.

California Attorney General Xavier Becerra had strong words for Education Secretary Betsy DeVos in his fight for student debt relief.

"We have seen her turn back the clock and we have seen her turn her back on our students," said Becerra.

Becerra announced California and seven other states will support a lawsuit against DeVos, alleging students are being denied debt relief after being defrauded by Corinthian Colleges.

"Companies loaded up these students with debts they knew never could be repaid with the ultimate goal of driving large bonuses to executives and profits to shareholders," said Seth Fotman, from the Consumer Financial Protection Bureau.

The now-defunct, for-profit Corinthian Colleges and its subsidiaries left thousands of students with major debt.

The Obama administration reached a deal to provide full relief, but under the new administration, only partial refunds are being granted.

"You borrow $40,000, which isn't uncommon, they're telling you maybe you'll get $4,000 of that $40,000 relieved," said Becerra.

Becerra said more than 50,000 students are still waiting on their claims. He said more than 8,000 claims were denied between December and May.

The U.S. Department of Education did not respond to a request for comment.

"We need good rules and we need good enforcement of those rules," said Becerra. "Unfortunately this administration doesn't seem interested in either of those things."
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