Rules To Help Defrauded Students Clear Loans Being Revised

WASHINGTON (AP) – The Education Department says it will change two Obama-era rules governing student loan forgiveness in cases involving fraud and misconduct by universities.

The department says it will convene special committees to rewrite Borrower Defense to Repayment and Gainful Employment regulations.

The rules were introduced last year as the department was processing claims from thousands of students who say there were defrauded by for-profit colleges.

Under the rules, students can have their loans erased if their college misrepresented the quality of its programs or broke a “contractual promise” with its students.

But Education Secretary Betsy DeVos said in a statement Wednesday those regulations were “overly burdensome and confusing” and need to be streamlined.

The Obama administration cracked down on for-profit chains such as The Corinthian Colleges and the ITT Technical Institute.

(© Copyright 2017 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

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