Trump Administration to Roll Back Obama-Era For-Profit Colleges Rules

Cameron Gross
June 28, 2017

The department said it will convene special committees to rewrite Borrower Defense to Repayment and Gainful Employment regulations.

Obama overhauled federal student lending, moving it from the banks to the Education Department and also trying to prevent students from taking out loans they could not repay after graduation.

"I think discrimination in any form is wrong and I have said before and I'll say again, the department is committed to ensuring that every child has a safe and nurturing environment", DeVos said during a question-and-answer session after her address to the National Alliance for Public Charter Schools.

Critics have said the rules are too burdensome for colleges. "At the California Department of Justice, we will continue working to ensure that all who seek higher education can do so without worrying about unscrupulous purveyors of sham college education".

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"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", DeVos said.

DeVos said almost 16,000 borrower defense claims are now being processed. "States and local communities are best equipped to make these decisions and framework", she answered when given an example of a charter school in IN that denies admission to students from LGBT households.

The plaintiff, The California Association of Private Postsecondary Schools, said the rule "threatens the existence" of many of its member institutions, according to the lawsuit.

"We commend the Department for moving forward to begin conversations that will really protect students from academic fraud", Steve Gunderson, CECU's president and CEO, said in a statement. They say the delays force students to keep up unaffordable monthly payments or face debt collection. "Colleges, especially those that operate as for-profit institutions, must be held accountable". The Corinthian Colleges chain was under heavy pressure from the Education Department when it shut down in 2015. The AGs estimated that more than 27,000 students nationwide who had already been approved for loan forgiveness had yet to see their loans discharged.

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