Student loan relief would be rarer under DeVos proposal

Posted at 11:59 AM, Jul 25, 2018
and last updated 2018-07-25 11:59:34-04

(AP) – The Trump administration is proposing new rules that could make it harder for students to get their loans erased in cases of fraud.

Education Secretary Betsy DeVos announced the proposal Wednesday after months of negotiations to replace Obama-era rules.

Her proposal would allow students to get loans erased primarily if a school intentionally misleads them into taking out student loans.

Rules finalized by the Obama administration in 2016 called for relief for a wider range of cases dealing with “breach of contractual promises.”

Those rules were created to clarify the loan forgiveness process after thousands of students said they were defrauded by for-profit colleges, including the Corinthian College chain. DeVos delayed the rules last year.

On Wednesday DeVos said her focus “has been and remains on protecting students from fraud.”