Lawsuit seeks new recourse for students on for-profit college fraud

WASHINGTON (AP) — Two women who claim they were defrauded by a for-profit college have sued the Education Department and a private loan servicer in a case their attorneys say could provide a new legal remedy for tens of thousands of students frustrated with the department’s inaction on claims seeking loan forgiveness.

The lawsuit, filed Sunday in federal court in New York, comes as the department begins work this week rewriting Obama administration rules designed to boost protections for students defrauded by their schools.

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