Bonamici Applauds Court Decision on Student Debt Relief

WASHINGTON, DC [10/16/18] –  Congresswoman Suzanne Bonamici (D-OR) applauded a court decision that allowed an Obama-era rule that protects student loan borrowers and holds predatory for-profit colleges accountable to go into effect today.

The decision ended months of delay for the enforcement of the Borrower Defense rule, which was originally announced in 2016. More than 100,000 borrowers in the country, including many Oregonians, were deceived by for-profit colleges. Many of the students who will benefit from Borrower Defense are veterans or parents, and are often from low-income families and underrepresented minority groups. 

“Today’s decision by the U.S. District Court in Washington, DC sends a clear message to Secretary DeVos: the Department of Education must stop putting the interest of for-profit companies before the interest of students,” said Congresswoman Suzanne Bonamici. “I’m pleased that Oregonians and defrauded student borrowers across the country who were cheated by predatory colleges will finally get the justice and financial relief they deserve. I call on Secretary DeVos to immediately and faithfully implement the Borrower Defense rule and stop collecting on the loans of borrowers seeking relief. The Department of Education must act in the best interest of students and taxpayers and hold predatory schools accountable for fraud and deception.”

As of May 2018, there were 1,495 Oregonians with pending Borrower Defense claims: 945 claims from former Corinthian College students; 135 claims from former ITT Tech students; and 415 claims from non-Corinthian and ITT Tech students.

Congresswoman Bonamici is an outspoken advocate for student loan borrowers and has led efforts to protect students and taxpayers from predatory for-profit colleges. She has supported the gainful employment and borrower defense rules, which are aimed at reining in predatory for-profit colleges.


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