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 penalize for-profit “career college” programs that leave graduates drowning in debt, is going back to the drawing board, too.
Secretary of the Department of Education Betsy DeVos called the regulations muddled and unfair in a statement announcing her department will rework the rules.
“Fraud, especially fraud committed by a school, is simply unacceptable. Unfortunately, last year’s rule-making effort missed an opportunity to get it right,” DeVos wrote.