Government to rewrite rules for student loan forgiveness


"It is the Department's aim, and this Administration's commitment, to protect students from predatory practices while also providing clear, fair and balanced rules for colleges and universities to follow".

The Trump administration is set to eliminate Obama-era rules targeting for-profit schools that left students with high amounts of debt, according to Dow Jones. The second rule provides students defrauded by their colleges a streamlined path to loan forgiveness.

"Students shouldn't have the pause button hit on their consumer protections, and this isn't the time for the Department of Education to step back from their responsibility to protect federal loan borrowers", she said. "I intend to use all of the legal tools at my disposal to continue to protect student loan borrowers in Washington". And some Democratic senators have urged DeVos to keep the rules in place. She added that the current rules had created a "muddled process that's unfair to students and schools".

What gets CAP so hot and bothered is that Secretary Betsy DeVos is a fan of allowing families to make decisions about their children's education with something like the freedom they exercise when deciding on food, clothing, housing, and most other areas of life.

One of the rules in question required for-profit colleges and certificate programs at non-profit colleges to show that the education their students receive leads to "gainful employment".

They also warn that delaying or cancelling the rule would violate the law.

The specific processes by which the department would roll back the rules were laid out in two notices in the Federal Register: for gainful employment and for borrower defense to repayment. As the senators argue, "implementing the borrower defense rule without delay is practicable, necessary, and very clearly in the public interest". And while you go through that process, you do not have the power to delay the current rule.

"Nearly 16,000 borrower-defense claims are now being processed by the department, and, as I have said all along, promises made to students under the current rule will be promises kept", said Ms. DeVos. Appointees with deep ties to this sector, including Mr.

The reforms became a hot-button issue in last year's presidential campaign, with Democrats seeking to preserve them and Republicans such as then-candidate President Donald Trump saying the USA government should "get out of the business" of lending.

The for-profit college industry did indeed lobby relentlessly in an unsuccessful effort to block the borrower defense rule, and they continue to fight to overturn the rule.