Education Secretary seeks rule redo for defrauded college students

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Last edited Sat Jul 22, 2017, 01:20 PM - Edit history (1)

Source: Reuters

U.S. | Wed Jun 14, 2017 | 1:45pm EDT

Education Secretary seeks rule redo for defrauded college students

By Lisa Lambert | WASHINGTON

U.S. Education Secretary Betsy DeVos on Wednesday called for a "regulatory reset," and pressed pause on a rule intended to speedily cancel the student-loan debts of people defrauded by for-profit Corinthian Colleges Inc and others, so that it can be rewritten.

DeVos said the department is still granting debt relief that the students are entitled to by law as expeditiously as possible, and some borrowers should expect to obtain discharges within the next several weeks. The Education Department is processing 16,000 claims for relief.

DeVos, a Republican and advocate of public-private partnerships in education, said she was delaying the effective date of the rule on accelerating the process, which was enacted at the end of last year under the administration of former President Barack Obama, a Democrat.

"Unfortunately, last year’s rulemaking effort missed an opportunity to get it right," DeVos said in a statement. "The result is a muddled process that's unfair to students and schools, and puts taxpayers on the hook for significant costs. It’s time for a regulatory reset."

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Read more: http://www.reuters.com/article/us-usa-education-loans-idUSKBN1952LG