Obama-era rules that lay out how students defrauded by colleges can erase their debt took effect Tuesday, after the Trump administration and an association of for-profit colleges lost their bids to delay them.In a morass of incompetence, corruption, and soulless evil at the Trump Administration, Betsy DeVoss is truly in a class of her own.
That means that Education Secretary Betsy DeVos is now responsible for implementing a rule that she said makes it too easy for students to cancel their student loans and that she has fought to kill.
Consumer advocates back the regulations, saying the government must take a more aggressive stance against colleges that they say routinely take advantage of veterans and vulnerable students.
But conservatives worry about the hit to taxpayers if a large number of student borrowers are allowed to avoid paying off their loans. In addition, colleges, particularly for-profit ventures, opposed the Obama administration rules as harmful to their programs and students seeking loans to attend them.
The federal government has a virtual monopoly over the $100 billion-a-year student loan market, so the rules about how it will handle fraud and other issues are important.
In June 2017, DeVos put the regulations on hold and said she would replace them with her own. Two former students of a for-profit college, as well as 19 states and the District, sued to stop the delay.
Last month, a U.S. district court said that the DeVos move was “arbitrary and capricious” and that the rules should take effect. It gave the agency until last Friday to try to issue a new delay, but the Education Department said it would not try again.
“The secretary respects the role of the court and will defer to its judgment in whether parts of the 2016 rule will go into effect,” Elizabeth Hill, a DeVos spokeswoman, said Friday.
It's good to see her lose.
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