Black colleges support rollback of debt-relief rule
Good actors wrongly targeted along with bad, they contend
WASHINGTON — When Education Secretary Betsy DeVos began rolling back regulations to curb the predatory practices of for-profit colleges, critics seethed that the Trump administration was throwing yet another lifeline to a rapacious industry — in this case, one that sees vulnerable undergraduates as nothing more than moneymaking targets.
Henry Tisdale, president of the small campus of Claflin University in Orangeburg, S.C., disagrees.
Since the Obama administration announced that it would establish a smoother pathway for students to claim that they had been misled by their colleges, Tisdale said he has feared an expensive legal battle over the smallest leaflet advertising a service on campus.
“A small mistake or error at a college like Claflin could put us out of business,” Tisdale said. “We don’t have the resources ready to respond to frivolous claims.”
Tisdale and his counterparts at other small, historically black colleges and universities are among an unlikely cohort of supporters for DeVos’ effort to tighten a wide-ranging regulation that offers federal debt relief to students who were defrauded or deceived by their higher-education institutions.
While the rules targeted for-profit colleges with billiondollar budgets, they apply to all institutions — including small, nonprofit colleges like Claflin that have been educating lowincome, minority and first-generation students for more than a century without scandal.
“It’s a regulation that should be focused on the bad actors, and we have been lumped in when we’re serving the students the bad actors are preying on,” Tisdale said. “We believe it should be improved to prevent unintended consequences.”
DeVos’ plans to overhaul the Obama-era rules for student borrowers reached a crucial stage last week, as a committee convened to renegotiate the regulations began debating the burden of proof students would have to meet to win claims against institutions.
The Education Department has proposed that students establish “clear and convincing evidence” that institutions misled them, compared with a “preponderance of evidence” standard applied under the Obama administration. Students would also have to prove that institutions had an “intent to deceive,” “knowledge of falsity” and “reckless disregard” that resulted in financial harm to borrowers.
Officials in the department said during negotiations this week that they believed the current preponderance-of-evidence standard did not sufficiently protect taxpayers and institutions.
But Joseline Garcia, a negotiator on the panel and president of the U.S. Student Association, said she believed the new standard swung too far in the opposite direction.
“I think that switching to ‘clear and convincing’ does the opposite for students,” Garcia said. “It doesn’t protect them at all.”
She added: “Although the institution may have made an honest mistake, the harm is still the same for the student. And people’s lives are greatly impacted by that harm.”
DeVos has cast the Obamaera regulations as taxpayerfunded money grabs. In announcing the repeal of the rules, she said that institutions of all types raised concerns about “excessively broad definitions of substantial misrepresentation and breach of contract, the lack of meaningful due process protections for institutions and ‘financial triggers’ under the new rules.”
The United Negro College Fund, which has joined the chorus of criticism over the Trump administration’s lack of tangible commitment to historically black colleges and universities, has long been among the most vocal opponents of the Obamaera rules.
Since the rules were announced in 2015, the college fund has expressed concern that they could threaten the viability of its 37 member institutions, which include Claflin, Spelman College, Morehouse College and Shaw University. The member institutions collectively educate 60,000 students on campuses of about 2,000 or fewer, and 75 percent of their students receive federal Pell grants.
The fund has said that the rules have a disproportionately negative effect on their member institutions because they have historically been underfinanced and serve vulnerable populations. They fear having to spend thousands of dollars fighting claims instead of backing academic programming at institutions that have been graduating students who consistently post high success and satisfaction rates.
Consumer rights and student advocates say the new standards essentially ask students who probably cannot afford to hire lawyers to become them.
“The administration is effectively asking borrowers to have conducted a full investigation, with the power of discovery, that turns up some very severe findings from their institution before filing a borrower-defense claim,” said Clare McCann, deputy director for federal higher education policy at the New America Foundation.
Education Department officials on the rule-making committee said they could not outline how a student would meet the new burden of proof. But they said they believed, based on the claims that they have reviewed, that students could meet the standards if they were informed about them.
DeVos announced last month that her department would begin notifying more than 20,000 students whether their claims had been approved. Some would see only partial relief under the new system.
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