Scott Statement on Obama Administration Actions to Protect Student Borrowers

Statement

Ranking Member Bobby Scott (VA-03) issued the following statement after the Department of Education announced automatic student loan discharges for borrowers who attended American Career Institute, a now-defunct college that admitted to breaking state law and purposely misleading students to pursue meaningless degrees and credentials. Former students who attended Corinthian Colleges Inc. and ITT Technical Institutions will also receive approvals for loan discharges in the coming weeks.

"It is the charge of the U.S. Department of Education to protect students and taxpayers from fraudulent colleges and universities, and the outgoing Administration has taken much needed steps to fulfill this charge. Time and time again, students throughout the country have been deceived by schools employing predatory practices and falsely promising a high quality education. The Department's recently finalized Borrower Defense to Repayment rule establishes a process to streamline loan relief in cases of institutional wrongdoing and safeguards taxpayer dollars by requiring financial protections from risky institutions. It is crucial that the incoming Administration continues this important work of making defrauded student borrowers whole again and protecting taxpayers by retaining and implementing the Borrower Defense to Repayment rule."

Source