DeVos will not seek fur­ther de­lay of Obama for-prof­its rule

The Mercury News - - News -

WASH­ING­TON >> The Ed­u­ca­tion Depart­ment said Fri­day it will no longer try to de­lay an Obama-era reg­u­la­tion that helped stu­dents de­frauded by for-profit col­leges get their loans for­given.

A fed­eral court ruled last month that Ed­u­ca­tion Sec­re­tary Betsy DeVos’ de­ci­sion to de­lay the reg­u­la­tion, known as bor­rower de­fense, was un­law­ful and that the rule should go into ef­fect. The depart­ment had un­til next Tues­day to re­spond.

Depart­ment spokes­woman Liz Hill told the As­so­ci­ated Press that Sec­re­tary Betsy DeVos “re­spects the role of the court and will de­fer to its judg­ment in whether parts of the 2016 rule will go into ef­fect.”

Hill added many parts of that rule “are bad pol­icy” and the agency will con­tinue work­ing on a new rule that is fair to both sides.

The rule would pro­hibit col­leges from forc­ing stu­dents to sign away their right to sue the pro­grams, would help some stu­dents get their loans dis­charged au­to­mat­i­cally and make bor­row­ers el­i­gi­ble for for­bear­ance when ap­ply­ing for loan dis­charges.

DeVos has crit­i­cized the Obama ad­min­is­tra­tion’s reg­u­la­tions aimed at polic­ing for-profit col­leges as in­tru­sive and un­fair to tax­pay­ers.

Adam Pul­ver, an at­tor­ney with Pub­lic Ci­ti­zen, one of the groups rep­re­sent­ing de­frauded stu­dents in the law­suit, hailed the de­ci­sion.

“It’s clear that the depart­ment has now rec­og­nized that there is no le­git­i­mate ba­sis to de­lay this rule,” Pul­ver said.

Mean­while, an­other party to the case, an in­dus­try group rep­re­sent­ing for-profit col­leges, has asked U.S. Dis­trict Judge Ran­dolph Moss to de­lay the Obama-era rule. The group, the Cal­i­for­nia As­so­ci­a­tion of Pri­vate Post­sec­ondary Schools, did not im­me­di­ately re­turn a re­quest for com­ment.

SAUL LOEB — GETTY IM­AGES

U.S. Sec­re­tary of Ed­u­ca­tion Betsy DeVos said she will de­fer to the court’s judge­ment in whether parts of an Obama-era reg­u­la­tion should go into ef­fect.

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