For-Profit Colleges Sue To Block Protections For Defrauded Students and Taxpayers

May 30, 2017
  • Industry News
  • for profit

A California-based trade group largely comprised of for-profit colleges late Wednesday sued Trump Education Secretary Betsy DeVos to block a 2016 Obama administration regulation, called the borrower defense rule, aimed at protecting students from predatory college practices. The rule they attack (1) implements a law already on the books that permits students who are defrauded by their colleges to have their federal loans cancelled; (2) requires schools that engage in sketchy behavior to put up some money to be available in case the school crashes and burns; and (3) prohibits federally-funded colleges from denying students the right to sue them in the event of fraud, campus rape, or other wrong.

Read more at The Huffington Post: http://www.huffingtonpost.com/entry/for-profit-colleges-sue-to-block-protections-for-defrauded_us_59276417e4b0d2a92f2f4274