Tag Archives: department of education

No Thumbnail

AFR Statement: Final Borrower Defense to Repayment Regulations

AFR welcomes the news that the Department of Education has finalized a rule that will prohibit the use of forced arbitration at schools. We hope that as the Department moves forward to procedural guidance and to enforcement that it does everything possible to ensure that no defrauded borrower be left buried in debt from a school that broke the law, betrayed its students, and cheated taxpayers.

No Thumbnail

Letter to Regulators: Over 10,000 AFR Members call on Dept of ED to Protect Scammed Students

Over 10,000 members of Americans for Financial Reform signed a petition calling on the Department to provide full loan relief to defrauded students, provide automatic loan cancellation when there is sufficient evidence of a school’s wrongdoing, not impose time limits on relief for defrauded borrowers, and close gaping loopholes allowing unscrupulous schools to prevent injured students from having their day in court.

No Thumbnail

AFR Statement: The Department of Education’s Proposed Rule on Borrower Defense to Repayment

“For years, advocates have urged the Department of Education to relieve the staggering debt of students who attended for-profit colleges like Corinthian which broke the law. Today, the Department released a forward-looking proposal outlining how students who were victims of illegal acts by their school may pursue a ‘borrower defense to repayment,’ or cancellation of the debt on their federal student loans. We look forward to working with the Department to improve the final proposal so that all students victimized by unlawful and deceptive conduct receive every penny of relief they deserve.”

No Thumbnail

Letter to Regulators: AFR, 34 Orgs Press for Automatic Relief to Groups of Students Victimized by Predatory Practices

“We are deeply concerned by the slow pace and small number of discharges that have been processed and that many of the Department’s proposals in the current negotiated rulemaking process move in the wrong direction, reducing eligibility for relief, pitting students against schools, and creating unnecessary burdens on students and the Department.”

No Thumbnail

AFR in the News: There’s a newish cop on the beat as Department of Education launches enforcement unit (Washington Post)

“The department must move quickly to discharge the debt of all Corinthian students,” said Alexis Goldstein, senior policy analyst at the progressive Americans for Financial Reform. “Hundreds of thousands of borrowers from Corinthian remain on the hook for federal student loans. … despite the fact that the illegal actions identified in department enforcement actions were endemic throughout the entire chain.”

No Thumbnail

AFR Statement: Student Aid Enforcement Unit, Department of Education Must Grant Swift Relief to Defrauded Corinthian Students

“It is good that the Department of Education recognizes the depth of the problems of fraud at too many for-profit institutions of higher education, as evidenced by the formation of the Student Aid Enforcement Unit. But hundreds of thousands of borrowers from the now-bankrupt Corinthian Colleges, Inc. remain on the hook for federal student loans, and continue to accrue interest. This is despite the fact that the illegal actions identified in Department enforcement actions against certain Corinthian schools were endemic throughout the entire chain.”

No Thumbnail

Letter to Regulators: AFR, 50 Orgs Suggest Improvements to Dept of ED’s Proposed Complaint System

“As advocates for students, consumers, veterans, faculty and staff, civil rights and college access, we believe the systematic tracking and reporting of student and borrower complaints is essential to providing quality customer service, ensuring college and loan servicer and collector accountability, and preventing waste, fraud, and abuse of taxpayer dollars.”