DeVos to Eliminate Rules Aimed at Abuses by For-Profit Colleges” — “Education Secretary Betsy DeVos plans to eliminate regulations that forced for-profit colleges to prove that they provide gainful employment to the students they enroll, in what would be the most drastic in a series of moves that she has made to free the for-profit sector from safeguards put in effect during the Obama era.
The so-called gainful employment regulations put into force by the Obama administration cut off federally guaranteed student loans to colleges if their graduates did not earn enough money to pay them off. That sent many for-profit colleges and universities into an economic tailspin because so many of their alumni were failing to find decent jobs.”
Consumer groups blasted Education Secretary Betsy DeVos this week over a new rule they say would make it harder for defrauded students to seek debt relief. Currently, students may be eligible for federal loan forgiveness if their college closed or was accused of fraudulent activity. More than 130,000 borrowers have applied since 2015, a majority of whom attended for-profit colleges.
The new rule would replace one written by the Obama Administration after the government received an unprecedented number of claims following the collapse of Corinthian Colleges in 2015. The government found Corinthian had misled students for years by advertising inaccurate job placement numbers.”