Proposed Student Finance Regulations May Hamper Small Institutions
The Brookings Institution
In June, the U.S. Department of Education released a 530-page set of proposed regulations on the topic of ‘defense to repayment.’ Although this sounds like an obscure topic (and reading the document is no picnic!), these proposed rules, if adopted, could allow students to be able to have their student loan debt forgiven if colleges misrepresented themselves to students. The Department of Education is currently working through this process forformer Corinthian Colleges students, and tens of thousands more students could be eligible under the proposed rules.