Home News Trump administration implements Obama-era student loan rules – Politico

Trump administration implements Obama-era student loan rules – Politico

28
0

TRUMP ADMINISTRATION MOVES TO IMPLEMENT OBAMA-ERA STUDENT LOAN RULES: The Education Department took a major step Friday toward implementing the Obama-era package of student loan regulations that officially took effect last fall after Education Secretary Betsy DeVos lost a legal battle to delay them.

— The sweeping set of “borrower defense” rules were finalized in the final months of the Obama administration in 2016. They govern loan forgiveness for defrauded borrowers, ban some types of mandatory arbitration agreements, give federal officials new tools to go after troubled colleges and require for-profit colleges to warn students if their alumni have low loan repayment rates.

— On Friday, the Trump administration unveiled “significant guidance” that explains how the department plans to carry out various provisions of the rules. Read the full document.

— The most immediate effect of the guidance will be on mandatory arbitration agreements. The Obama-era rule prohibits colleges receiving federal aid from requiring students to settle complaints through arbitration rather than in court — and also stops colleges from requiring students to sign away their legal right to band together in class action lawsuits against their school.

View Original Source

(28)

tags:

LEAVE YOUR COMMENT

Your email address will not be published. Required fields are marked *