WASHINGTON–The Trump administration said it plans to revise two Department of Education regulations aimed at helping borrowers who say they were misled by for-profit colleges and took out student loans as a result.
One of the rules, known as the Borrower to Defense Repayment regulation, was scheduled to take effect next month. The other, called the Gainful Employment regulation, is already on the books.
The Obama administration had originally billed the borrower defense rule as a simpler process for handling claims by consumers who say they were defrauded by for-profit schools and are seeking to have the federal government forgive their student loans. The gainful employment rule would put college programs at risk of losing federal student aid if graduates don't earn enough to support themselves and repay their education loans.
In a statement, Secretary of Education Betsy DeVos said, "My first priority is to protect students.” The statement faulted the Obama administration for a rulemaking process she said has produced results that are unfair to students and schools while putting taxpayers "on the hook for significant costs."
"It's time for a regulatory reset," continued DeVos in her statement. "It is the Department's aim, and the 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 nearly 16,000 borrower defense claims are currently being processed. The Department of Education will continue to process applications under the current rule until a new one is enacted, she said.
Education officials plan to hold hearings on the new rulemaking on July 10 in Washington, D.C. and July 12 in Dallas, Texas.