Lawsuit seeks new recourse on for-profit college fraud

Two women who claim they were defrauded by a for-profit college have sued the Education Department and a private loan servicer.

Tina Carr and Yvette Colon had attended Sanford-Brown Institute, a forprofit college in New York, and are seeking to have their student loans erased. Their lawsuit cites federal and state laws that prohibit fraud.

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.