A judge ruled on Tuesday, October 16th that an Obama-era set of consumer protections for defrauded students will go into effect immediately. The Trump administration along with the for-profit college sector made multiple attempts to delay this regulation.
Now that the regulation, known as borrower defense, is in effect, there is an easier process through which defrauded students can have their federal student loans cancelled. Certain students whose schools closed while they were enrolled will be entitled to an automatic discharge of their debt. On top of all that, schools that receive federal funding can't force their students into arbitration (settling disputes outside of court) or require them to forgo class actions.
More than 160,000 students claim to the government that their school defrauded them and more cases keep coming in. Almost all claims come from for-profit schools (there are about 7,000 of which in the US).
The regulation was announced in 2016 by the Obama administration, aiming at canceling the debt of those with degrees from schools that misled or deceived them.
The regulation will affect the American people by giving 160,000 defrauded American students an easier way to go about getting their federal loans cancelled. Do you side with Trump and the for-profit colleges on this situation? Or do you feel that this regulation brought justice upon defrauded students?
I believe that the defrauded students should get some sort of settlement out of this. I believe that it isn't their fault that the school closed or they practically had money stolen from them. They shouldn't have to pay for things they didn't want to pay for, so this regulation would be a good thing.
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