Sentences with phrase «borrower defense rules»

Democratic attorneys general from 18 states and Washington D.C. have filed a laws ui t against the Department of Education and Education Secretary Betsy DeVos after the secretary froze borrower defense rules last month.

Last July, Eighteen Democratic state Attorneys General sued DeVos and the Department of Education, seeking to force the Department to implement the Obama - era borrower defense rules.

David Halperin, writing in Huffington Post, observed that «the DeVos - Trump draft borrower defense rules... essentially nullify the 1994 law that gives former students who are ripped off by their colleges... the right to seek cancellation of their student loans.»

According to the IRS, if you went to a Corinthian school and had your loans canceled under the borrower defense rule, you should not owe taxes on the canceled amount.

As recently as this April, we explained that Congress chose not to roll back the important protections for defrauded student loan borrowers provided by the Department of Education's borrower defense rules.

Attorneys general from Massachusetts, New York and 16 other states filed suit against Education Secretary Betsy DeVos and her department Thursday, accusing DeVos of breaking federal law and giving free rein to for - profit colleges by rescinding the Borrower Defense Rule.

This caused the Obama Administration to update the Borrower Defense Rule to provide sweeping protections to indebted students who attended for - profit colleges.

This may come as a surprise to many students given that the Obama Administration implemented the Borrower Defense Rule.

DeVos froze the Borrower Defense Rule before it was set to take effect in July 2017, claiming it was unfair to both borrowers and colleges.

For now, however, the Borrower Defense Rule is still potentially applicable, explaining the reasoning behind this most recent lawsuit.

Since Betsy DeVos took office earlier this year, she has cast doubt about the preservation of landmark initiatives from the Obama administration concerning student loan relief of defrauded for - profit college students who were struggling with payments; more specifically, she has suggested changes to the Borrower Defense Rule.

Secretary John B. King Jr. has defended the rule and says his department conducted a thorough process for introducing the borrower defense rule.

The borrower defense rule originated by the closing of Corinthian Colleges in 2015, which was followed shortly by the closing of ITT Technical Institute.

Republicans were opposed to this rule, known as the Borrower Defense rule, when it was proposed.

According to the Department of Education, $ 250 million in relief has already been given to over 15,000 borrowers that attended Corinthian and it is unclear how many more stand to benefit from the borrower defense rule.

The borrower defense rule is not the only higher education reform Republicans can overturn.

Even if the Republican - controlled Congress decides not to pursue overturning the Borrower Defense rule, president - elect Trump can instruct agencies to be restrictive in our they impose this rule.

The law already offers loan relief to students that attended a struggling for - profit school, but the borrower defense rule offers an easier path to obtaining that relief.

The Obama administration pitched the borrower defense rule as an easier process for handling claims by borrowers who say they were victims of for - profit school's schemes and sought to have the federal government forgive their student loans.

The borrower defense rules were formulated to help erase the federal student loan debt of student debtors who were defrauded by unethical institutions.

Her letter urged DeVos to maintain the borrower defense rules that were put in place by the Obama Administration.

The borrower defense rules crafted by the Obama administration were scheduled to take effect July 1, 2017.

These borrower defense rules aim to protect borrowers from predatory tactics taken by for - profit colleges.

DeVos froze the borrower defense rules shortly before they were scheduled to take effect on July 1, 2017.

The goal of the lawsuit was to have the borrower defense rules fully restored.

The lawsuit stated that Secretary DeVos» actions signaled the eventual repeal and replacement of the borrower defense rules.

The lawsuit was filed on Thursday, July 6, and challenges DeVos» decision to pause the borrower defense rules, which had been finalized by the Obama administration.

The borrower defense rule was finalized in November 2016 and set to take effect July 1 before DeVos intervened.

The charges gave rise to more government scrutiny under the Obama administration, including the borrower defense rule that DeVos hopes to renegotiate.

However, the future of the borrower defense rule remains uncertain.

«Delaying the borrower defense rule would allow schools to continue to use forced arbitration rip - off clauses to avoid accountability for fraud, deny victims their day in court, and leave taxpayers on the hook.»

«The borrower defense rule is simple, and important.

«The Department of Education's decision to revise the gainful employment and borrower defense rules and delay the implementation of the existing borrower defense rule is deeply worrisome and wrong.

Most parts of the borrower defense rules are scheduled to go into effect on July 1, 2017.

The borrower defense rules, finalized in fall 2016, and the gainful employment rules, finalized in fall 2014, explain the standards that schools must meet in order to continue to receive federal aid dollars, and the process by which students can vindicate their right to discharge their loans due to their school's misconduct.

According to the IRS, if you went to a Corinthian school and had your loans canceled under the borrower defense rule, you should not owe taxes on the canceled amount.

On October 20, 2017, the Education Department announced further delays of the 2016 Borrower Defense rule.

We described the borrower defense rules in detail when they were finalized last fall and in a recent issue brief.

Importantly, neither the delay and nor the rewrite of the borrower defense rules alters the fact that borrowers have a right to raise their defenses.

Last June, Secretary of Education Betsy DeVos delayed the Borrower Defense Rule, a policy designed to offer loan relief to borrowers who had been defrauded by for - profit colleges.

In June, DeVos suspended the borrower defense rules until a more thorough review could be done.

DeVos suspended the borrower defense rules that were put in place by the Obama administration.

Wright, who owes over $ 25,000 in student loans, applied for student loan forgiveness under the borrower defense rules put in place by the Obama administration.

The Student Loan Report has been staying on top of any and all news stories related to actions surrounding the borrower defense rules.

Secretary of Education Betsy DeVos has been sued by Niesha Wright for suspending the borrower defense rules in June.

In a statement announcing the suspension of the borrower defense rules, DeVos said, «Unfortunately, last year's rulemaking effort missed an opportunity to get it right.

The goal of Wright's lawsuit is to end the DeVos - ordered suspension of the borrower defense rules and enable her to apply for forgiveness.

As recently as this April, we explained that Congress chose not to roll back the important protections for defrauded student loan borrowers provided by the Department of Education's borrower defense rules.