The U.S. Court of Appeals has prevented the implementation of new regulations aimed at providing easier access to debt relief for students who have been defrauded.
New rules for student debt relief have been blocked by U.S. Court (Photo: Philippine Star)
New Rules for Student Debt Relief
According to a recent report by News Nation, the Department of Education has initiated a borrower defense program that aims to assist students who have taken loans and feel that their educational institutions have misled or deceived them in any way. This program offers a promising solution for students who may be struggling to repay their loans due to such deceptive practices by their educational institutions.
According to a Yahoo News article, new rules for student debt relief prohibit schools from coercing students into signing mandatory arbitration agreements. Additionally, borrowers will automatically receive student debt relief one year after the institution they attended closes.
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5th Circuit Blocked New Rules for Student Debt Relief
In the news report by KRON4, the Department of Education’s recent implementation of new rules for student debt relief has been blocked by the U.S. Court of Appeals.
The Career Colleges and School of Texas sued the administration. They suggested that the new rules for student debt relief were viewed as a means for the administration to offer student loan forgiveness. The standards for identifying fraud were deemed to target college institutions unfairly.
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