Federal Hearings Seek to Reverse Trump-Era Student Loan Rules -
"The revisions include strengthening protections for borrowers harmed by misleading practices by their college."
Why this is important: Student loan debt continues to be a topic of conversation in the political arena, particularly as it relates to for-profit colleges that have faced criticism for years relating to costs versus job skills for students and graduates. The U.S. Department of Education's Office for Civil Rights recently held a multi-day public virtual hearing as part of the DOE’s review of existing regulations implementing President Biden's executive order relating to student loans. As part of the hearing, the DOE sought input from a variety of stakeholders. “Much of the ire of borrowers and student loan reform advocates is focused on for-profit and online colleges.” However, the DOE is reviewing a large number of agenda items in the student loan arena, not simply regulations relating to for-profit schools. Student loan servicers and lenders should be vigilant in monitoring DOE announcements, hearings, and publications surrounding student loan reforms as they meander through the lengthy investigation, proposal, and comment periods for federal rulemaking and other regulatory changes.
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