18 states sue Education Secretary DeVos for rescinding student protection rules
A coalition of 18 states and the District of Columbia continued Thursday Department of Education and Secretary Betsy DeVos for the cancellation of Obama-era rules to protect students from predatory schools.
The “defense of borrowers” rule – which should take effect on July 1 – has allowed borrowers to apply for student loans for a loan repayment if they were defrauded by for-profit schools.
It also largely prohibits schools participating in the federal student loan program to force students to use arbitration to resolve disputes and waive their class action rights.
The lawsuit alleges that the state’s Department of Education violated federal law by the rules of problems, which were terminated by the Obama administration in November.
Approximately 16,000 borrower defense applications are being processed, according to the Department of Education last month.
The Department of Education has canceled the rule “without requesting, receiving or responding to any comments from a speaker or a member of the public, and not participating in the public deliberation process,” according to the complaint states.
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In a statement, Department of Education press secretary Liz Hill described the complaint indicating an “ideologically motivated trial.”
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“Attorneys general say the state to regulate first and ask after legal,” he said.
The DeVos movement is based in part on a lawsuit filed in May by the Association of Private Post-Secondary Schools in California, which argued that the defending standards of borrowers beyond the legal authority of the Ministry of Education and have been designed With erroneous data. “The Ministry can not simply reject these accusations,” Hill said.
Trump administration clearly wanted to eliminate what it regards as so cumbersome regulation for the private sector.
Since taking the helm in the Department of Education earlier this year, DeVos, the daughter of Amway founder Richard DeVos, and a leading supporter of charter schools, remote rules student protection adopted by the Obama administration.
“From day one, Secretary DeVos has tagged with school principals to benefit students and families who drowned in unaffordable student loans,” said Attorney General Maura Healey, who led the study.
The Obama administration’s regulators have mostly focused their application on schools for fraudulent purposes that charge thousands of tuition and fees by making misleading or inaccurate statements about the prospects of graduates finding work in their fields studies.
For-profit schools rely heavily on federal student loans and grants. In 2009, education companies listed 15 in benefits on 86% of their income on loans financed by taxpayers, according to demand.