DeVos to Pause Obama-era Regulations on For-Profit Schools

In her most sweeping action on higher education to date, Betsy DeVos on Wednesday announced plans to halt two Obama-era regulations aimed at holding for-profit colleges accountable and providing relief to students defrauded by them.

The first regulation targeted by President Donald Trump’s education secretary is known as Borrower Defense to Repayment. The rule outlines how student loan borrowers who have been defrauded can apply to have their loans forgiven. The department is currently processing 16,000 loan forgiveness claims.

The second regulation, which is already in effect, is known as gainful employment. It aims to hold schools accountable for outcomes of students by requiring schools to prove that their graduates’ incomes compared to their debts will allow them to pay back their student loans. Programs that don’t meet that standard are barred from accessing federal funds. Read More…