Massachusetts attorney general Maura Healey filed a lawsuit Tuesday against Education Secretary Betsy DeVos and the Education Department seeking debt cancellation for 7,200 former Corinthian Colleges students.
Healey's office submitted an application for loan relief in 2015 on behalf of those students, who attended Everest Institute campuses in Massachusetts. The application was based on a state lawsuit against Corinthian, which found the for-profit chain had violated the state's Consumer Protection Act.
Although a federal court last year found the group application was a valid submission, the department has yet to agree to rule on the claims. The former Corinthian students have continued to face repayment and in some cases have had tax refunds seized or wages garnished.
Healey has argued Corinthian misled former students by routinely inflating job placement rates in communications with former students.
The Project on Predatory Student Lending at Harvard Law School filed a similar lawsuit Tuesday on behalf of the same borrowers.