Scott Statement on Final Proposed Borrowers Defense Rule

WASHINGTON – Ranking Member Bobby Scott (VA-03) released the following statement in response to the Trump administration’s release of a final proposed Borrowers Defense rule.

“The Trump administration’s final proposed Borrowers Defense rule is yet another assault on consumer protections for student borrowers. Rather than supporting students who are cheated out of the education and the future they signed up for, the administration is proposing a new, burdensome process for evaluating claims that will shield schools from accountability and prevent a vast majority of students from getting desperately needed relief.  In fact, a state investigation could find a school defrauded a student and violated state law, but that student’s claim for relief could still be denied by the U.S. Department of Education.

“Most troubling, the proposed rule forces students to suffer the long-term, devastating impact of default before even filing a claim for relief.  This is not only bad for students, it is bad for taxpayers who are on the hook when a federal student loan goes into default.

“The proposed rule will cut off access to desperately needed relief for students defrauded by predatory schools.  Under the leadership of Secretary DeVos, the Trump administration is sending an alarming message: Schools can cheat its student borrowers and still reap the rewards of federal student aid.”


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