"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," Higher ED Dive reports.
..."'This single federal standard for all borrower defense claims, I think it is just going to do a lot to simplify the process,' said Jill Desjean, a senior policy analyst with the National Association of Student Financial Aid Administrators.
The proposal would be a major update to the borrower defense rule, which has been subject to intense regulatory back-and-forth over the past decade. Although the rule predated the Obama administration, it took on new relevance during that era as former students of Corinthian Colleges sought debt relief when that for-profit chain collapsed."
NASFAA's "Notable Headlines" section highlights media coverage of financial aid to help members stay up to date with the latest news. Articles included under the notable headlines section are not written by NASFAA, but rather by external sources. Inclusion in Today's News does not imply endorsement of the material or guarantee the accuracy of information presented.
Publication Date: 7/12/2022