Betsy DeVos has a number of reasons for writing new student loan forgiveness rules.
If these revisions push through, student loan forgiveness programs will see changes that might polarize students and colleges.
Student loan help has always been controversial and these policy alterations are throwing issues into relief.
Forbes has the full story.
DeVos To Rewrite Student Loan Forgiveness Rules
The Trump administration announced Wednesday that it will rewrite two Obama-era rules intended to protect student loan borrowers.
The U.S. Department of Education said new committees will be formed to rewrite rules for Borrower Defense To Repaying and Gainful Employment.
The two rules involved in DeVos’ latest move—Borrower Defense to Repaying and Gainful Employment—are certainly gaining a lot of criticism from various sectors.
The first rule forgives or cancels student loans if the borrower was a victim of fraud; the second one ensures that repayment of student loan comes with the financial stability of the borrower after graduation.
While some say that new student loan forgiveness rules are necessary to protect borrowers, others believe that the Trump administration is only making things worse for victims of fraud and other borrowers.
Playing for Profit?
It’s hard to ignore the suspicion that the new student loan forgiveness rules only serve the interest of profit-greedy colleges and institutions.
To begin with, DeVos did not make clear and explicit statements about the changes to the rules and how exactly these changes will benefit borrowers.
Furthermore, she provides no solid basis for the need for change in the first place.
Students currently victimized by fraudulent loan-giving bodies and those that are unable to secure a good job because of crippling student loans are not the only ones who need to worry.
The new student loan forgiveness rules will have effects beyond the purview of the Borrower Defense to Repaying rule and Gainful Employment rule.
For instance, the fallout may manifest in career-specific student loan forgiveness programs such as those for teachers and public servants.
New student loan forgiveness rules may be written to add or remove stipulations in this program that could potentially do more harm than good.
Advocates say pipeline to student loan forgiveness appears to have slowed since @realDonaldTrump took office. Story: https://t.co/pogBo2H9P9 pic.twitter.com/e3ShACjf0k
— AP Eastern U.S. (@APEastRegion) June 26, 2017
The Rules of Rule-Making
This issue raises the question: what are the rules of rule-making?
Making decisions such as DeVos’ seems like such an easy thing to do. One cannot help but notice the element of whim and fickleness in this kind of governance.
News like this is everyone’s concern because it highlights how arbitrary rules can be. And this goes beyond, albeit deeply connected, to the issue of new student loan forgiveness.
If new student loan forgiveness rules can be rewritten so easily, what can’t the administration change? Which rules must be treated as immutable and which rules are subject to the wishes of those in power?
Such questions may sound like a stretch. But changes such as the new student loan forgiveness rules are always manifestations of larger forces at work.
Watch this video from The College Investor for more information on student loan forgiveness:
If you want to know more about student loan forgiveness, check out our guide to the Public Service Loan Forgiveness Program. What do you think about this recent development? Let us know in the comments below.
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