Department of Education attempts to block Borrower Defense Rule; 19 Attorney Generals sue.
Inexplicably, the Department of Education has elected to block the rule known as the "Borrower Defense Rule." Last fall, in response to several cases of for-profit colleges closing amid allegations of fraud, the Department of Education released updated rules, called the borrower defense to repayment regulations, to provide relief to federal student loan borrowers defrauded by their schools. These rules were meant to streamline the process for such claims and help ensure that
Older Student Loan Borrowers Being Pushed Into Poverty
According to a new report by the National Consumer Law Center, the collection practices on federal student loans are increasingly forcing older adults into poverty by seizing Social Security benefits to repay defaulted student loans. Social Security provides a crucial safety net that typically accounts for the majority of an older adult's cash income, and, in many cases, it accounts for nearly all of the older adult's income. Without Social Security, almost half of all older