Representative Malinowski Fights to Protect Students Defrauded by Predatory For-Profit Colleges
(Washington, DC) Today, the House passed H.J.Res. 76, to block the Department of Education from implementing a rule that would hurt students who were defrauded by predatory colleges.
Instead of implementing the rule from 2016 that was designed to protect defrauded borrowers, the Trump Administration wrote its own rule, which forces defrauded borrowers to navigate a burdensome process to get relief, severely restricts how much relief they can receive, and shifts the cost of providing debt relief from predatory schools to taxpayers.
Analysis of the new rule estimates that the share of eligible loan debt forgiven will drop from 53 percent using the Obama-era standard to just 3 percent under the Betsy DeVos rule. Further, an estimated 97 percent of students who were fleeced by colleges engaged in illegal conduct will have to repay their loan debt under the new rule.
“Secretary DeVos’ rule will deny relief to nearly every student who was defrauded by predatory colleges. Today Congress voted to reverse that rule, and right this wrong,” said Congressman Malinowski.