DeVos Defends Restricting Debt Relief for Bilked Students
The education secretary said “many students” got “a valuable education” from for-profit colleges as officials planned a round of notifications to applicants for full relief, 95 percent denials.
The hearing was convened as the Education Department began notifying borrowers who claimed they were defrauded how much debt they will have to pay back. Her new rule, which takes effect in July, will require applicants to demonstrate personal financial harm, even if their colleges were proved to have misled students. This week, the department announced a new methodology that grants relief to applicants based on their classmates’ earnings.
“If somebody went into one of these programs hoping to become a nurse, for example, and now they’re selling clothes at a department store, it doesn’t mean that they weren’t defrauded,” protested Representative Suzanne Bonamici, an Oregon Democrat and a former consumer protection lawyer.