Trump eyes shift making it harder to have student loans forgiven in fraud cases: report

Trump eyes shift making it harder to have student loans forgiven in fraud cases: report
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The Education Department has drafted a plan that will make it more difficult for defrauded students to receive loan forgiveness.

The proposed plan, The Wall Street Journal reported Wednesday, would require former students to show “clear and convincing” evidence that their colleges had an “intent to deceive” them by distributing false information when recruiting.

Education Secretary Betsy DeVosElizabeth (Betsy) Dee DeVosACLU slams DeVos's Title IX plan: Changes will make it 'less safe' for sex assault survivors Department of Education unveils new rules to protect those accused of sexual harassment Millions being spent on U.S. Marshals Service security detail for DeVos: report MORE has tried to crack down on the Obama-era policy that provide full loan forgiveness to defrauded students, arguing that it unfairly hurt universities and taxpayers who would have to shoulder the costs of reimbursement.


The rule had not yet gone into effect when DeVos delayed it over the summer and announced that her department would draft a new plan.

DeVos’s plan will also only give students partial loan forgiveness based on their income and will reduce the amount of time that students have to file claims to three years.

The new plan also nixes an Obama-era policy that allowed state attorneys general to file claims on behalf of groups of students who claim they were defrauded by the same school.

Critics of the plan told the Journal that the proposed policy of making students provide evidence of intent is a threshold that many will not be able to meet.

Last year, a federal judge ordered Trump to pay $25 million in a lawsuit brought by former students of Trump University, who said the school was an expensive fraud that offered no real educational value.