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student loans 3 articles

18 States Sue DeVos, DOE Over Student Loan Rule

Eighteen states and the District of Columbia are suing Education Secretary Betsy DeVos and the Department of Education over their plans to rescind a rule that would make it easier for students of predatory for-profit colleges to have their loans forgiven. The Borrower Defense Rule was adopted by the DOE in November and was set to take effect this month. Under the rule, students could have their loans erased if their for-profit college misrepresented the quality of its programs or broke a “contractual promise” with its students. The rule also would also allow the DOE to seek recovery of loan ... Read More

Trump Admin Set To Overhaul Fraud Protections For College Students

Two anti-fraud rules adopted under the Obama Administration to protect students from misconduct by for-profit colleges are the latest regulations Donald Trump’s administration plans to unravel. The Department of Education, under Betsy DeVos, is planning to overhaul the Borrower Defense to Repayment and Gainful Employment rules, both of which currently offer students critical protections against for-profit colleges using fraudulent and deceptive practices to boost student enrollments. Rules Under Fire Under the Borrower Defense rule, students can have their loans erased if their for-profit college misrepresented the quality of its programs or broke a “contractual promise” with its students. The Gainful ... Read More

Whistleblowers expose fraud in private Texas college group

American Commercial Colleges Inc. (ACC) has agreed to pay the United States up to $2.5 million plus interest to resolve allegations brought by two whistleblowers under the False Claims Act (FCA) that the school falsely reported it complied with certain eligibility requirements of federal student aid programs. The scheme allowed the for-profit private school to collect taxpayer money to which it was not entitled. Title IV of the Higher Education Act of 1965 mandates that in order to participate in federal student aid programs, for-profit colleges such as ACC must not obtain more than 90 percent of their annual revenues ... Read More