Chairman Scott Applauds Biden Administration for Restoring Relief for Victims of Predatory Colleges
WASHINGTON – Today, House Education and Labor Committee Chairman Robert C. “Bobby” Scott (VA-03) issued the following statement after the Biden-Harris administration announced that it is replacing the Trump-era formula for determining student debt relief for defrauded borrowers. Multiple independent analyses found that the Trump formula was “nonsensical and harmful to students.”
“I applaud President Biden and Secretary Cardona for restoring access to debt relief for students who were defrauded by predatory colleges. The previous administration’s formula for determining debt relief was deeply flawed both in its use of statistics and the unfair outcomes it produced for borrowers. Under the old formula, some defrauded borrowers would be granted relief only if they made ‘negative earnings’ — which is obviously impossible.
“The Committee’s in-depth report on the Trump administration’s handling of Borrower Defense claims specifically includes a recommendation that former students of ITT Technical Institute and Corinthian Colleges, who made valid claims of fraud, should receive the full debt relief that they are entitled to under the law . The Biden administration’s new policy for Borrower Defense claims aligns with that recommendation and provides student loan borrowers the relief that they need and deserve.
“Once again, the Biden administration is using its full authority to deliver lifechanging loan forgiveness to students and families.”
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