Today, House Democrats passed H.J. Res. 76, a resolution to overturn the Trump administration’s commonsense borrower defense rule that will provide defrauded students relief, hold all colleges and universities accountable, and better protect taxpayer dollars.
Rep. Virginia Foxx (R-NC), Republican Leader of the Education and Labor Committee, said on the House floor prior to the vote: “Students who have been harmed by fraudulent practices deserve relief. Period. Sadly, Obama’s over zealous and flawed borrower defense regulation abandoned due process and limited student choice.
“So, the Trump administration acted quickly to reverse this troubling regulation. In 2019, the Education Department issued a new borrower defense rule to better protect borrowers and taxpayers.
“The rule is the result of more than two years of deliberations, public hearings, negotiations with higher education stakeholders, and considering, incorporating, and responding to public comments on this issue.
“Thanks to this regulatory reset all colleges and universities will be held accountable, defrauded students will see relief, and taxpayer dollars will be better protected. Today’s resolution would repeal the Trump administration’s rule and go back to Obama regulations that harm students and taxpayers.
“Students deserve better.”
BACKGROUND: In 2016, during the final months of his presidency, Obama implemented a borrow defense regulation that created more chaos than clarity and encouraged tens of thousands of borrowers, whether they were harmed or not, to apply to have their loans forgiven. This was nothing more than a political move by the left to provide a backdoor scheme to hand out free education. Claim filings for loan forgiveness went from 59 in the first 20 years to roughly 300,000 claims in the last five years.