Less than three weeks before it was set to kick in, the Trump administration has rolled back a regulation designed to protect students who were defrauded at for-profit colleges and announced plans to rework a related law already on the books.

The new rule would have set up a clear path for students to report fraud and have their student loans forgiven; made it easier for a group of students to make claims together (if, for instance, a school folds); and gotten rid of a “rip-off clause” in contracts that prevented students from suing the colleges.

The other Obama-era regulation, which would...

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