CECU On Borrower Defense Relief Reversal


August 24, 2021
Arlington, Va. — The U.S. Department of Education today announced that borrowers with successful borrower defense claims will be entitled to a rebuttable presumption of full student loan relief. This comes after a March 18, 2021, announcement that the Department was rescinding the 2019 guidance published by the Trump Administration and “adopting a streamlined approach for granting full relief under the regulations.”
Career Education Colleges and Universities (CECU) President and CEO Dr. Jason Altmire had this to say in response to today’s announcement:
“Students whose institutions mislead or defrauded them are entitled to relief on their federal student loans. However, the Department’s new policy creates a perverse incentive for the filing of frivolous claims. We call on the Department to immediately develop a clear and well-defined partial relief methodology that’s informed by feedback from impacted stakeholders and that’s fair for students, institutions, and taxpayers.”