The potential effects of the borrower defense rules the U.S. Department of Education released last week have generated disagreements -- and some uncertainty. But an accompanying announcement restoring Pell Grant eligibility to students of shuttered colleges was widely praised.
The department's decision to exercise that authority is part of a bipartisan push by the U.S. Congress to find solutions for students whose progress toward a degree was cut short by the recent closures of for-profit institutions such as ITT Technical Institutes and Corinthian Colleges.
The borrower defense regulations seek to create a standardized framework for students who were defrauded or misled by such colleges to have their student loans forgiven. They also add protections for student borrowers and taxpayers, the department said. While the implications of those rules will be picked over and debated by policy makers and people in higher education, the Pell announcement was praised for removing an obstacle for students as they seek to earn degrees.
The decision also establishes a clear precedent for Pell recipients who may be affected by future closures of institutions, say consumer groups and financial aid policy experts.
Read more at Inside Higher Ed: https://www.insidehighered.com/news/2016/10/31/wide-praise-restoration-pell-grant-eligibility-students-closed-colleges