10.31.2022 Higher Education
Statement from Kelly McManus on the Finalized Regulations for Targeted Debt Relief Programs from the U.S. Department of Education
WASHINGTON, DC (October, 31, 2022) — With the finalization of the rules for Borrower Defense to Repayment and other targeted debt relief programs after a year of negotiations and hearings, Director of Higher Education Kelly McManus issued the following statement:
“Today, the Department issued final regulations to provide critical relief for borrowers who were lied to by their colleges. These regulations are the result of years of advocacy and litigation on behalf of cheated borrowers to secure a basic promise Congress made in the Higher Education Act: If your school cheats you, you are not on the hook for that loan. These final regulations will also ensure borrowers whose colleges closed before they could graduate, borrowers who are totally and permanently disabled, and others will have access to the targeted debt relief benefits Congress established years ago.
However, making students whole on the back end, after a school has acted unscrupulously, is not enough. The Department of Education must also hold these schools accountable to shield tomorrow’s students from harm in the first place. We look forward to working with the Department and with Congress to make sure that predatory colleges are put out of business and that all programs demonstrate value for students and taxpayers.”