DeVos issues new loan forgiveness rule for swindled students

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DeVos issues new loan forgiveness rule for swindled students
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Education Secretary Betsy DeVos late Friday issued a new rule on loan forgiveness for students defrauded by their colleges, a rewrite of Obama-era regulations that advocates say will make it tougher for students to get relief.

DeVos said schools must be held accountable but the Obama rule wasn't working. The new rule, she said, will"treat students and taxpayers fairly."

"With this policy overhaul, Secretary DeVos has cemented her legacy as best friend to predatory colleges and enemy to the students they rip off," Yan Cao, a fellow at The Century Fund, said in a statement. But James Kvaal, president of The Institute for College Access and Success, said the new rule will make it more difficult for students defrauded by their schools to get relief.

"By leaving students on the hook for colleges' illegal actions, today's rule sends a clear message that there will be little or no consequences for returning to the misrepresentations and deceptions that characterized the for-profit college boom," he said.

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