Rules to help defrauded students clear loans being revised

Under the Borrower Defense Regulations, a successful enforcement action against a school by a state Attorney General entitles borrowers to obtain loan forgiveness and enables the Department of Education to seek repayment of any amounts forgiven from the school.

The Trump administration will announce on Wednesday that it will rollback Obama-era rules devised to close for-profit colleges that are said to leave students with high debt and little job opportunities, according to the Wall Street Journal.

Under the rules, students can have their loans erased if their college misrepresented the quality of its programs or broke a "contractual promise" with its students.

U.S. Senator Joe Manchin (D-WV) questioned U.S. Secretary of Education Betsy Devos today when she testified in front of the Appropriations Subcommittee on Labor, Health and Human Services, Education, and Related Agencies on the Department of Education's FY 2018 budget. "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.

Bruised but defiant, UK's May will seek to form a new government
That did not help May, who had overseen cuts in police numbers during six years in her previous job as interior minister. The election was called to consolidate the Conservative Party's hold over United Kingdom politics.

Concerned that the US Education Department under Secretary Betsy DeVos will fall short in its defense of these consumer protection rules, Healey and attorneys general from states including California, Iowa, Oregon, Illinois, and NY have filed a motion to intervene in a case before the US District Court for the District of Columbia.

"The borrower defense regulations provide critical protections for borrowers who were subjected to misleading and predatory practices by their postsecondary institutions", the motion says.

Eight states and the District of Columbia filed a motion in federal court Tuesday seeking to retain the rules. "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. In that case, more than 15,000 student claims for loan discharge because of fraud have been approved, totaling $247 million in loans.

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