AGs sue DeVos for delaying for-profit college rules

  • AGs sue DeVos for delaying for-profit college rules

AGs sue DeVos for delaying for-profit college rules

In June, DeVos said that she would delay implementation of the rule, which was set to go into effect on July 1, as a part a broader "regulatory reset" of some Obama-era policies targeting for-profit colleges. At the time, DeVos said the rules had created "a muddled process that's unfair to students and schools" and that they would be rewritten. North Carolina Attorney General Josh Stein's office pointed to the numerous students in the state who were left with big loan debts when the for-profit Corinthian College abruptly closed its doors two years ago.

The suit also criticized DeVos for saying a reason for the delay was a pending legal challenge to the regulations by the California Association of Private Postsecondary Schools.

In April, Education Secretary Betsy DeVos made known her stance on assisting students with loans after she did away with legal regulations implemented by President Barack Obama in October -- which served the goal of aiding those riddled with student debt.

In addition to NY, the coalition includes the Attorneys General of California, Connecticut, Delaware, Hawaii, Iowa, Illinois, Maryland, Massachusetts, Minnesota, New Mexico, North Carolina, Oregon, Pennsylvania, Rhode Island, Vermont, Virginia, Washington, and the District of Columbia. Students shouldn't have to worry that "their American dream will be stolen by unscrupulous purveyors of a sham college education", he said.

The worst-performing programs cited by the Department of Education - those that consistently leave their graduates with more debt than they can repay - are required to show evidence of improvement or lose eligibility for federal funding.

But according to the complaint filed by Massachusetts Attorney General Maura Healey, the department's reasoning for the delay is "mere pretext for repealing the rule and replacing it with a new rule that will remove or dilute student rights and protections".

Representatives for DeVos and the U.S. Department of Education - which is also named in the suit - didn't immediately respond to calls for comment on the suit. Under the Borrower Defense Rule, former students of those schools who did not take out subsequent federal student loans qualify for automatic closed school discharge of their loans.

The Obama administration introduced the new rules following accusations that hundreds of for-profit colleges had defrauded students.

Schools that exceeded the limits would risk losing their ability to offer federal student aid.

The lawsuit asks that the borrower defense rule be enforced, at least until it is renegotiated via DeVos' rule-making committee.

Joining Attorney General Becerra in filing the lawsuit are the attorneys general of 17 other states and the District of Columbia. USA officials also sought to ban colleges-many of them for-profits-from mandating that aggrieved students use secretive arbitration instead of going to court, on the theory that it'd be easier for regulators to spot wrongdoing and students would be at less of a disadvantage.