WASHINGTON— Today the House of Representatives passed H.J.Res.76 which blocks Secretary of Education Betsy DeVos’ rewrite of the Borrower Defense Rule from going into effect. Upon assuming leadership of the Education Department, Secretary DeVos has consistently refused to implement President Obama’s Borrower Defense Rule, saddling thousands of students entitled to loan forgiveness with debilitating debt.
“Instead of helping students left with exorbitant debt and useless degrees from predatory for-profit institutions, Secretary DeVos has only helped her for-profit college pals,” said Rep. Raúl M. Grijalva. “Today, I voted to reject her latest scheme to enrich for-profits at the expense of defrauded borrowers and taxpayers.”
After notorious for-profit institutions Corinthian Colleges and ITT Technical Institute collapsed in 2016, President Obama issued the Borrower Defense Rule and created a process to help defrauded students find relief. Secretary DeVos has refused to follow the rule, ignored court orders to stop collecting loan payments from defrauded students entitled to relief, and rewrote the rule to make it more difficult for students to obtain relief.
“Under the failed leadership of Secretary DeVos, defrauded borrowers from for-profit colleges could be denied relief even when for-profits clearly violated the law,” continued Rep. Grijalva. “That’s not helping our students, it’s only helping for-profit executives and rubber stamping their fraudulent programs. Congress must now pass comprehensive legislation like the College Affordability Act to crack down on for-profits and give students access to the quality, affordable programs they deserve.”
Rep. Grijalva has long championed federal regulations to stop for-profit colleges from preying on vulnerable students and get defrauded students the relief they need to move on with their lives. He’s introduced the Protect Financial Aid for Students and Taxpayers Act numerous times to prohibit for-profits from using federal funds to market to vulnerable students and has repeatedly urged both the Obama and Trump Administrations to strengthen regulations to protect student borrowers.
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