Education Secretary Betsy DeVos finalized rules that make it more difficult for federal student loan borrowers to cancel their debt on the grounds that their college defrauded them
Education Secretary Betsy DeVos on Friday finalized rules that make it more difficult for federal student loan borrowers to cancel their debt on the grounds that their college defrauded them, scaling back an Obama-era policy aimed at abuses by for-profit colleges.
In an announcement about the new rules, DeVos said on Friday that fraud in higher education “will not be tolerated” by the Trump administration. The rules, she said, include “carefully crafted reforms that hold colleges and universities accountable and treat students and taxpayers fairly.” The final policy, which takes effect July 1, 2020, sets a more stringent standard for loan forgiveness than exists under the Obama-era policy. But it’s not as restrictive as the one DeVosThe initial Trump administration plan would have required borrowers to prove that their college intentionally misled them in order for them to have their loans forgiven.
Rep. Bobby Scott , chairman of the House education committee, said that "the Trump administration is sending an alarming message: Schools can cheat [their] student borrowers and still reap the rewards of federal student aid."
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