House Democrats overturn DeVos on student loan forgiveness, but change unlikely to pass Senate – USA Today
WASHINGTON – The Democrat-controlled House voted Thursday to overturn regulations introduced by Education Secretary Betsy DeVos that critics said make it more difficult to get student loan forgiveness if a college suddenly closes.
The move to overturn DeVos’ rules is unlikely to pass the GOP-controlled Senate. The White House suggested Trump is likely to veto the bill if it does.
So-called borrower defense rules, introduced by former President Barack Obama’s administration, were meant to protect students from fraudulent institutions. Some colleges took students’ federal loan money but failed to provide them with an education that would lead to employment to pay back their debt, Obama-era regulators said. Without loan forgiveness, students would be on the hook to pay back the money without the benefit of a degree.
DeVos struck down those rules last year. She said they made it too easy for students to seek loan forgiveness. Among her changes: Borrowers must apply for loan forgiveness if their institution closes suddenly. Before the change, students were automatically eligible. DeVos argued the changes would save the federal government $11 billion over the next decade.