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Government to rewrite rules for student loan forgiveness

Government to rewrite rules for student loan forgiveness

Colleges and universities are especially concerned about the excessively broad definitions of substantial misrepresentation and breach of contract, the lack of meaningful due process protections for institutions and "financial triggers" under the new rules.

Education department spokespeople have expressed DeVos' commitment to protect students, but DeVos indicated early on that she was unlikely to enforce the rules.

During her address to the National Charter Schools Conference in Washington, D.C., DeVos said that the U.S. Department of Education "is committed to ensuring that every child has a safe and nurturing environment", adding that she'll pursue discrimination "in any form".

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.

Debt forgiveness claims already filed by 16,000 borrowers will be processed as promised.

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.

The motion to intervene in this case has been filed by the Attorneys General of California, Illinois, Iowa, Maryland, Massachusetts, New York, Oregon, and Pennsylvania and the District of Columbia.




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.

The Obama administration had led a crackdown on for-profit colleges accused of misconduct. The coalition calls for the DOE to waste no time in reviewing and approving student loan forgiveness applications related to this case.

Last year, the ITT Technical Institute, one of the nation's largest chains of for-profit colleges, shut down, saying it couldn't survive sanctions by the department.

What exactly would a federal school voucher program look like, and would it fund schools that discriminate against students based on their gender, religion, race or sexual orientation? "This helps to ensure that lawbreakers pay, not taxpayers".

Natalia Abrams, executive director of Student Debt Crisis, an advocacy group, said the decision sends a clear message that "Millionaires and big businesses can take advantage of the American people for huge profits, but in the end students and their families are footing the bill".


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