Talks begin to rewrite rules protecting students from fraud

Wednesday, 15 November 2017, 06:36:13 AM. Education Department officials opened formal negotiations on Monday to rewrite federal rules meant to protect students from fraud by colleges and universities.
Education Department officials opened formal negotiations on Monday to rewrite federal rules meant to protect students from fraud by colleges and universities. The talks with university representative and student advocates are taking place as the department faces criticism for delaying consideration of tens of thousands of loan forgiveness claims from students who say they were defrauded by for-profit colleges. The 1994 rule, known as borrower defense, allowed loan forgiveness if it was determined that the college had deceived them. But the rule was rarely used until the demise of Corinthian and ITT Tech for-profit chains several years ago, when thousands of students flooded the department with requests to cancel their loans. In 2016, the Obama administration passed revisions to the rule, which clarified the process and added protections for students. DeVos froze those revisions until new rules can be written. Student advocates hope to put in place additional checks on schools to prevent them from acting dishonestly. For-profit colleges say the Obama changes were unfair to schools and hope for a more balanced approach this time. Annmarie Weisman, a representative for the department, said the starting point for the negotiations Monday, will be the initial 1994 rule, not the Obama revisions. As the negotiations kicked off, department officials sparred with advocacy groups about whether the event would be live-streamed. Officials objected to the idea, saying a more intimate...Read more
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