Rep. Takano Statement on Department of Education’s New Formula that Shortchanges Borrowers Defrauded by their Colleges
Washington, D.C. – Rep. Mark Takano (D-CA) released this statement after the Department of Education released a revised formula that provides partial loan relief to defrauded borrowers under the Borrower Defense to Repayment rule.
“Once again, Secretary Betsy DeVos is taking action to harm student borrowers who were defrauded by their colleges and are in desperate need of student loan debt relief. This new formula that the Department plans to implement will shortchange borrowers who are legally entitled to full student loan discharges after being defrauded by the predatory colleges they attended.
“Throughout her tenure, Secretary DeVos has refused to properly implement the Borrower Defense rule, and this new formula is yet another part of her effort to prevent student borrowers from being made whole. Her inability to work on behalf of students and taxpayers is causing severe financial strains on thousands of defrauded students.
“More than 227,000 defrauded student borrowers are currently waiting for Secretary DeVos to do her job and process their Borrower Defense claims. They deserve to have their claims processed and approved expeditiously. Congress needs answers on the Secretary’s consistent failure to do so.”
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