Giving Compass' Take:

· Reporting for MarketWatch, Jillian Berman explains that Xavier Becerra, attorney general of California, is leading a team of eight states in support of student borrowers in a recent college fraud lawsuit. According to Berman, the lawsuit argues that the students who have been defrauded by their schools are entitled to full relief under the federal law. 

· Should these scammed students be required to pay back their loans? How is relief calculated for federal student-loan borrowers?

· Read more on for-profit colleges and federal student loans.  

Several states are throwing their support behind scammed student-loan borrowers hoping for relief.

Led by Xavier Becerra, the attorney general of California, eight states including, Massachusetts, New York and Illinois, filed an amicus brief recently in a closely-watched class-action lawsuit challenging Betsy DeVos-led Department of Education’s approach to calculating relief for federal student-loan borrowers who say they’ve been scammed by their schools.

An amicus brief, also known as a friend-of-the-court brief, allows entities with an interest in the litigation to weigh in with what they believe to be relevant information about the case.

At issue in the case is whether the agency can legally provide only a partial discharge of federal student-loans a group of borrowers acquired to attend Corinthian Colleges, a for-profit college chain that collapsed in 2015 amid claims the school misled students about job placement and graduation rates. During the Obama administration these borrowers received a full discharge of their loans.

Read the full article about the college fraud lawsuit by Jillian Berman at MarketWatch.