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Senate Overturns DeVos Rule Limiting Debt Relief for Defrauded Students

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  • The Senate has voted to overturn a Trump administration rule that would make it harder for students who were defrauded by for-profit colleges to have their loans forgiven or reduced. 
  • Education Secretary Betsy Devos’ changes require applicants to individually prove a school knowingly misled them and that they were financially harmed by the deception, among other difficult measures aimed at limiting who gets assistance. 
  • The legislation will now go to President Donald Trump’s desk for him to decide whether or not to uphold the rule with a veto or side with Congress against his own education secretary.

What Is DeVos’ Rule? 

The Senate voted Wednesday to overturn a Trump administration rule that would limit debt relief for students who were defrauded by for-profit colleges. 

In a 53-42 vote, 10 Republicans joined Democrats to pass the resolution, which has already been approved by the House. This decision is a bipartisan rebuke of Education Secretary Betsy DeVos’ rule, aimed at weakening an Obama-era policy. 

The Obama-era-updated “borrower defense” rule allowed for students who attended schools that committed serious fraud to request that their loan debt be forgiven. It was meant to regulate the for-profit sector and protect students whose colleges engaged in misconduct. It was updated in the wake of the collapse of schools like ITT Tech and Corinthian. 

But DeVos made changes that raised the bar for borrowers’ relief claims. Her adjustments made it so that applicants had to individually prove a school knowingly misled them and that they were financially harmed by the deception. It also set a three-year deadline on claims.

According to the New York Times, the education department later adopted a complicated formula for calculating relief that limits nearly all applicants to only partial relief and required the majority to repay most of their loans. 

Arguments For and Against It 

The rule change is scheduled to take effect in July and the Education Department argues that it protects community colleges, historically back colleges, and taxpayers “from undue harm from the poorly written Obama-era regulation.”

DeVos has slammed the debt-relief system as a “free money” giveaway and told members of Congress last year that her rule would protect taxpayers from people trying to scam the system by applying for debt relief when they suffered no harm. At the time, she said those students who were defrauded would still be eligible for loan forgiveness. 

But critics of the rule said this would effectively kill the department’s loan forgiveness program by setting requirements that almost no borrowers would be able to meet. “The burden of proof for these students is so absurdly unrealistic,” said Representative Susie Lee, Democrat of Nevada, who sponsored a companion resolution in the House.

“We don’t believe your life should be ruined because some school lied to you about the education they were promising, the loans you were taking out. We believe that you deserve a second chance in life,” said Democrat Sen. Dick Durbin of Illinois, who sponsored the legislation.

Democrats also stressed that the original loan forgiveness law, which has been around since 1995, was rarely used until for-profit chains started falling apart in 2014. 

So far, the Education Department has approved 51,000 loan-relief applications. Nearly all of them were approved during the Obama administration and the department has eliminated some $535 million in debt. Under DeVos, the department stopped processing the applications while the rewrite was challenged in court. There are currently about 170,000 pending applications.

The American Legion and dozens of other veterans groups also backed the effort to overturn the rewritten rules. The focus on veterans attracted much Republican support because veterans have long been targetted with predatory recruitment tactics thanks to their lucrative G.I. Bill benefits. 

The benefits are particularly attractive to for-profit schools because federal law requires those schools to obtain at least 10% of their revenue from sources other than Education Department-backed student loans.

Trump Has Veto Power 

After the decision, Department of Education spokeswoman Angela Morabito said, “It’s disappointing to see so many in Congress fooled by misinformation from the Left and the fake news narrative about our efforts to protect students from fraud.” 

“Students, including veterans, who are defrauded by their school and suffer financial harm as a result deserve relief, and our rule provides them relief,” she added.

The legislation will now go to President Donald Trump’s desk for him to decide whether or not to uphold the rule with a veto or side with Congress against his own education secretary. The White House has already threatened a veto but several outlets reported that Trump told Senate Republicans on Tuesday that he is “neutral” on repealing the rule.

“I have sort of a neutral position,” Trump allegedly said according to people in the room. “I’m in between.”

The White House did not dispute those reports but instead pointed to a statement from the administration released in February. That statement said Trump’s advisors would recommend he veto the resolution and defended DeVos’ plan, saying it “restores due process, the rule of law and student choice.”

A source close to the president told The New York Times that DeVos called Trump after his “neutral” comment. They said Trump supports finding a solution to the loan problem but doesn’t feel strongly about DeVos’ approach. However, Politico reported that after speaking over the phone, Trump indicated that he would vote in favor of DeVos’ regulations. 

So at this time, it’s unclear what Trump will decide, but a veto wouldn’t be unlikely. At a news conference on the resolution Wednesday, Durbin said he will work hard to get the votes needed for a veto override if the president rejects the measure.

See what others are saying: (The New York Times) (CNN) (Politico) 


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Purdue Pharma Agrees To Plead Guilty To 3 Opioid-Related Charges in $8B Settlement, But Don’t Expect Them To Pay the Full Amount

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  • As part of a more than $8 billion settlement with the U.S. Department of Justice, Purdue Pharma will plead guilty to one count of conspiracy to defraud the U.S. government and two counts of violating anti-kickback, or bribery, laws.
  • Because Purdue filed for bankruptcy last year, that full figure likely won’t be collected by the government.
  • Under the settlement, which will need approval in bankruptcy court, Purdue would become a public benefit corporation that is controlled by the government, with revenue from opioid sales being used to fund treatment options and programs.
  • A number of state attorneys generals and Democratic lawmakers have said the settlement does not hold Purdue or its owners fully accountable and could derail thousands of other cases against the company.
  • They have also argued that the government should “avoid having special ties to an opioid company… that caused a national crisis.”

Purdue to Plead Guilty to 3 Criminal Charges

The Justice Department announced Wednesday that Purdue Pharma has agreed to plead guilty to three criminal charges related to fueling the country’s opioid epidemic. 

Notably, those guilty pleas come as part of a massive settlement worth more than $8 billion, though Purdue will likely only pay a fraction of that amount to the government.

Purdue is the manufacturer of oxycontin, which is a powerful and addictive painkiller that’s believed to have driven the opioid crisis. Since 2000, opioid addiction and overdoses have been linked to more than 470,000 deaths. 

As part of the settlement, Purdue will plead guilty to one count of conspiracy to defraud the United States. There, it will admit that it lied to the Drug Enforcement Administration by claiming that it had maintained an effective program to avoid opioid misuse. It will also admit to reporting misleading information to the DEA in order to increase its manufacturing quotas.

While Purdue originally told the DEA that it had “robust controls” to avoid opioid misuse, according to the Justice Department, it had “disregard[ed] red flags their own systems were sending up.”

Along with that guilty plea, Purdue will also plead guilty to two anti-kickback, or bribery, related charges. In one charge, it will admit to violating federal law by paying doctors to write more opioid prescriptions. In the other, it will admit to using electronic health records software to increase opioid prescriptions.

According to a copy of the plea deal obtained by the Associated Press, Purdue “knowingly and intentionally conspired and agreed with others to aid and abet” the distribution of opioids from doctors “without a legitimate medical purpose and outside the usual course of professional practice.”

The $8 billion in settlements will be split several different ways.

In one deal, the Sackler family — which owns Purdue — will pay $225 million to resolve civil fines. 

As part of the main deal, another $225 million will go directly to the federal government in a larger $2 billion criminal forfeiture; however, the government is actually expected to forego the rest of that figure.

In addition to that, $2.8 billion will go to resolving Purdue’s civil liability. Another $3.54 billion will go to criminal fines, but because Purdue filed bankruptcy last year, these figures also likely won’t be fully collected — largely because the government will now have to compete with other claims against Purdue in bankruptcy court.”

Purdue Will Become a “Public Benefit Company”

Since Purdue is in the middle of bankruptcy proceedings, a bankruptcy court will also need to approve the settlement.

“The agreed resolution, if approved by the courts, will require that the company be dissolved and no longer exist in its present form,” Deputy Attorney General Jeffrey Rosen said. 

However, that doesn’t mean that Purdue’s fully gone or that it will even stop making oxycontin. In fact, as part of this settlement, the Sacklers would relinquish ownership of Purdue, and it would then transform into what’s known as a public benefit company.

Essentially, that means it would be run by the government. Under that setup, money from limited oxycontin sales, as well as from sales of several overdose-reversing medications, would be pumped back into treatment initiatives and other drug programs aimed at combating the opioid crisis.

For its part, the Justice Department has endorsed this model. 

Should Purdue Be Punished More?

There has been strong opposition to this deal, mainly from state attorneys general and Democratic members of Congress who say it doesn’t go far enough.

Those critics argue that the settlements don’t hold Purdue or the Sackler family fully accountable, especially the Sacklers since — unlike Purdue — they didn’t have to admit any wrongdoing.

“[W]hile our country continues to recover from the pain and destruction left by the Sacklers’ greed,” New York Attorney General Letitia James said, “this family has attempted to evade responsibility and lowball the millions of victims of the opioid crisis. Today’s deal doesn’t account for the hundreds of thousands of deaths or millions of addictions caused by Purdue Pharma and the Sackler family.”

“If the only practical consequence of your Department’s investigation is that a handful of billionaires are made slightly less rich, we fear that the American people will lose faith in the ability of the Department to provide accountability and equal justice under the law,” A coalition of 38 Democratic members of Congress said in a statement to Attorney General Bill Barr last week.

While this settlement doesn’t include any convictions against the Sacklers specifically, as the Justice Department noted, it also doesn’t release them from criminal liability and a separate criminal investigation is ongoing. 

Still, last week, 25 state attorneys general asked Barr not to make a deal that includes converting Purdue into a public benefit company, urging the Justice Department to “avoid having special ties to an opioid company, conflicts of interest, or mixed motives in an industry that caused a national crisis.” 

Part of their concern is that the government would essentially run this new company while also holding the original one accountable. Those attorneys general instead argued that Purdue should be run privately but with government oversight. 

See what others are saying: (Associated Press) (The New York Times) (Fox Business)

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Parents of 545 Children Separated at U.S. Border Still Can’t Be Found

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  • A Tuesday filing update from the ACLU and Department of Justice revealed that a Steering Committee in charge of reuniting families that were separated at the U.S.-Mexico border has not been able to find parents of 545 separated children. 
  • Efforts to reach these parents via telephone have been unsuccessful and those involved are not hopeful that will change. Two-thirds of these parents are believed to be in their respective countries of origin.
  • So far, parents for 485 kids have been reached.
  • Finding these parents is an already complicated process made even more strenuous by the coronavirus pandemic. On-the-ground searches were suspended because of COVID-19 but have now picked up in limited capacity.

Parents of 545 Children Remain Unfound

A Tuesday court filing from the U.S. Department of Justice and American Civil Liberties Union revealed that the parents of 545 children who had been separated at the U.S.-Mexico border have not been found or contacted.

Two thirds of those parents are expected to be in their respective country of origin. While there have been efforts to reach these families via phone, they have not been successful. Other efforts to reach these parents are in the works. 

Thousands of families were separated in 2018 under President Donald Trump’s zero tolerance policy, but a federal judge ordered that those families should be reunited. Soon after, many were, but in reality many more families had actually been separated. It was later revealed that the Trump Administration had been separating families back in 2017 under a pilot program. A court order reuniting those families was not issued until last year. 

A Steering Committee, of which the ACLU and other organizations are members, is now searching for these parents. According to the filing, the government provided a list of 1,556 children. The current focus on reaching children whose membership in this case is not contested and who have available contact information for a sponsor or parent. The Steering Committee has attempted to reach the families of all 1,030 children who fit that bill, and have successfully reached the parents, or their attorneys, for 485 kids. 

“There is so much more work to be done to find these families, Lee Gelernt, the deputy director of the ACLU Immigrants’ Rights Project, told NBC News, which broke the story.

“People ask when we will find all of these families, and sadly, I can’t give an answer. I just don’t know,” he continued. “But we will not stop looking until we have found every one of the families, no matter how long it takes. The tragic reality is that hundreds of parents were deported to Central America without their children, who remain here with foster families or distant relatives.”

Efforts to Find Parents

Because so much time has passed between family separation practices and today, initiatives to find those parents are difficult. They are also further complicated by the fact that during the pilot program, U.S. officials did not collect thorough information from these parents, and many were deported before courts ordered they be reunited with their kids. 

Nan Schivone, the legal director for Justice in Motion, which carries out on-the-ground searches for parents, told The Washington Post that attorneys “take the minimal, often inaccurate or out-of-date information provided by the government and do in-person investigations to find these parents.” 

Schivone said it is an “an arduous and time-consuming process on a good day.” Sometimes, these lawyers might find themselves in remote villages where outsiders are suspect and language barriers can slow down communication.

The pandemic halted these efforts as lockdowns and curfews made it impossible for Justice in Motion to look for parents abroad. Though, Tuesday’s filing revealed that “limited physical on-the-ground searches for separated parents has now resumed where possible to do so.” 

See what others are saying: (NPR) (NBC News) (Washington Post)

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Scott Peterson’s Murder Convictions To Be Re-examined

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  • Scott Peterson was convicted in 2004 of murdering his wife, Laci, and their unborn child.
  • He was sentenced to death for the crimes, but the California Supreme Court overturned the death sentence in August of this year after finding that the trial court improperly dismissed potential jurors. The court did, however, uphold the convictions.
  • Now, the CA Supreme Court has ordered the San Mateo County Superior Court to review the convictions and determine whether Peterson should be given a new trial on the grounds that one juror “committed prejudicial misconduct by not disclosing her prior involvement with other legal proceedings.”
  • That juror had not disclosed the fact that she was granted a restraining order in 2000 against her boyfriend’s ex-girlfriend for harassing her when she was pregnant.

Peterson’s Death Sentence Was Previously Overturned

The California Supreme Court on Wednesday ordered a review of Scott Peterson’s 2004 convictions for murdering his wife, Laci, and their unborn son.

Peterson was sentenced to death by lethal injection for those crimes in 2005, but in August of this year, the California Supreme Court overturned his death sentence. 

We reject Peterson’s claim that he received an unfair trial as to guilt and thus affirm his convictions for murder,“ the court said at the time. “But before the trial began, the trial court made a series of clear and significant errors in jury selection.”

As far as what errors the court is talking about, it said the trial judge wrongly discharged prospective jurors who expressed opposition to capital punishment but said they would be willing to impose it.

Court to Decide on Potential New Trial

Now, weeks later, the California Supreme Court has ordered that the case return to the San Mateo County Superior Court to determine whether Peterson should be given a new trial on the ground that a juror “committed prejudicial misconduct by not disclosing her prior involvement with other legal proceedings, including but not limited to being the victim of a crime.”

According to the Los Angeles Times, that juror had not shared the fact that she was granted a restraining order in 2000 against her boyfriend’s ex-girlfriend for harassing her when she was pregnant. 

Peterson’s lawyers even say that when all potential jurors were asked whether they had ever been a victim of a crime or involved in a lawsuit, the juror said no to both questions.

They also say she was one of the two holdouts for convicting Peterson of first-degree murder for killing his unborn child, with the jury ultimately convicting Peterson of the first-degree murder of Laci and the second-degree murder of the unborn child. 

For now, it’s up to the San Mateo Court to decide what happens next, but the California Supreme Court did say that prosecutors could again seek the death penalty for Peterson at a new hearing.

See what others are saying: (The New York Times) (Los Angeles Times) (NBC News)

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