Education Department should make it easier, not harder, for defrauded students to get debt relief

Federal law provides for loan discharges when students are defrauded by schools that seek to profit from federal student loans, grants, and veterans benefits at student and taxpayer expense. However, until recently, this right has not been publicized and few borrowers have gotten the relief to which they are entitled. The Education Department has proposed new rules to clarify and strengthen some protections for defrauded federal student loan borrowers, and these rules will help curb bad behavior by predatory colleges. We need to ensure that the new rules make it easier for borrowers to get full relief.


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We need to tell our legislators and Education Secretary John King that the rules should provide full loan relief to defrauded students, provide automatic discharges when there is sufficient evidence of a school’s wrongdoing, not impose time limits on relief for defrauded borrowers, and close gaping loopholes allowing unscrupulous schools to prevent injured students from having their day in court


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