Battle lines form over new borrower defense to repayment rules
Natalie Schwartz
December 6, 2022
New regulations will allow the agency to review debt forgiveness claims for groups rather than individuals. For-profits question whether that’s fair.
Earlier this year, the U.S. Department of Education notified DeVry University that it plans to recoup more than $23 million from the institution to claw back money spent on federal loan discharges for some of its former students.
Around 650 students who previously attended the for-profit university filed claims against the institution under the borrower defense to repayment regulation, which allows students to have their loans discharged if their institutions defrauded them. The rules also let the Education Department recoup these costs from colleges.
