When some major for-profit colleges collapsed a few years ago, the Obama administration concluded that their students were misled by unscrupulous educators, who peddled false claims and made misleading promises. To that end, the Democratic administration launched a loan-forgiveness initiative for defrauded students and crafted new safeguards.
Then the Trump administration took office. As the New York Times reported overnight, things are quite a bit different now.
Education Secretary Betsy DeVos proposed on Wednesday to curtail Obama administration loan forgiveness rules for students defrauded by for-profit colleges, requiring that student borrowers show they have fallen into hopeless financial straits or prove that their colleges knowingly deceived them.
The DeVos proposal, set to go in force a year from now, would replace Obama-era policies that sought to ease access to loan forgiveness for students who were left saddled with debt after two for-profit college chains, Corinthian Colleges and ITT Technical Institute, imploded in 2015 and 2016.
The new rules won’t take effect right away — a public-comment period is poised to get underway — but they are scheduled to be implemented next summer.









