The new rules take hold in July and are separate from President Joe Biden's sweeping student debt forgiveness plan, which has been held up in court.
WASHINGTON — The Biden administration is moving forward with an overhaul of several student debt forgiveness programs, aiming to make it easier for borrowers to get relief if they are duped by their colleges or if they put in a decade of work as public servants.
Chief among the changes is a revamp of a program known as borrower defense, which offers debt forgiveness to students whose colleges make false advertising claims or otherwise commit fraud. The program aims to help the victims of predatory for-profit colleges, but it has been bogged down by complex rules and political battles, resulting in a mounting backlog of applications.
In a major shift, the federal government will also be able to force colleges to cover the cost when their students are granted loan cancellation because of fraud. Those costs have typically been passed to taxpayers, prompting complaints from conservative critics who say the program too freely cancels debt at the public's expense.
"The department has cut corners in a rush to ram through a punitive borrower defense rule with serious legal and regulatory flaws that could undermine the American education system," said Jason Altmire, a former Democratic congressman and president and CEO of Career Education Colleges and Universities.
The new rule erases the 15-day rule, allowing payments to count even if they are made late or in multiple installments. It also allows borrowers to make up to a year of payments in advance in a single sum, rather than making monthly payments. That program cancels federal student debt for people who are permanently disabled and unable to generate significant income. But many have been granted that relief later had their debt reinstated because they failed to submit paperwork during a three-year monitoring period.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Bitcoin Heads for First Positive Month Since JulyIt may not exactly be the 'Uptober' that some crypto bulls were hoping for, but bitcoin (BTC) trended higher in October, its first positive month since July. Meanwhile, the bitcoin options market is signaling a potential bottom as market sentiment returns to neutral. 'All About Bitcoin' host Christine Lee breaks down the Chart of the Day.
Read more »
CAUGHT ON VIDEO: Burglary suspect falls through ceiling at restaurantBecause the restaurant was robbed in July, the owner says they “beefed up” security.
Read more »
Biden admin relaxes rules for student debt forgivenessThe Biden administration is moving forward with an overhaul of several student debt forgiveness programs, aiming to make it easier for borrowers to get relief if they are duped by their colleges or if they put in a decade of work as public servants. The Education Department on Monday finalized a package of rules that it proposed earlier this year. The new rules take hold in July and are separate from President Joe Biden’s sweeping student debt forgiveness plan, which has been held up in court amid a legal challenge from Republican-led states.
Read more »
FBI Identifies ‘Lady of the Dunes,' Murder Victim Found Nearly 50 Years Ago in MassachusettsRuth Marie Terry has bene identified nearly 50 years after she was found dead on Cape Cod, east of Race Point Ranger Station on July 26, 1974.
Read more »
Protesters interrupt Flossmoor forum after 64-year-old woman shot dead by policeThe 64-year-old was shot and killed in July after police said she charged at officers with a knife while they responded to a domestic dispute.
Read more »