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.
The rules, which the Trump administration weighed for more than a year, set a more stringent standard for when the Education Department will wipe out the debt of borrowers who claim they were misled or deceived by their respective colleges.
The overhaul of the rules — called “borrower defense to repayment” — is a response to conservative criticism that the current federal standards, set by the Obama administration, are too lenient and expensive for taxpayers. The Obama-era rules were written following the collapse of for-profit college company Corinthian Colleges in 2015, when tens of thousands of former students flooded the Education Department with requests for loan forgiveness.
TVNL Comment: These 'for profit' colleges are friends of billionair DeVos. They rip off students and leave them high and dry with the same kind of fraud offered by Trump's fake university. This is just another destruction of Obama policies.