3 major changes in Biden’s borrower defense proposal
Natalie Schwartz
July 12, 2022
New draft regulations would make it much easier for borrowers to receive debt relief, but for-profit colleges say they wouldn’t have due process.
Last week, the Biden administration proposed sweeping regulations that would overhaul the nation’s student loan system. One element of the proposal is an updated borrower defense to repayment rule, which forgives federal loans for students who were defrauded by their institutions.
The Biden administration’s rule seeks to make it easier for defrauded students to receive debt relief and aims to crack down on predatory marketing and recruiting practices by colleges. It lays out a timeline meant to streamline the review of borrower defense applications. And it would create one standard for reviewing claims, regardless of when a borrower took out their loans. Previous regulations had different standards for students to receive relief based on when they got their loans.
