Providing for Congressional Disapproval of Rule Submitted By Department of Education Relating to ``Borrower Defense Institutional Accountability''--veto Message From the President of the United States

Floor Speech

BREAK IN TRANSCRIPT

Mr. SCOTT of Virginia. Mr. Speaker, I yield myself such time as I may
consume.

Mr. Speaker, I rise in support of overriding the President's veto of H.J. Res. 76, a bipartisan Congressional Review Act resolution that would stop the Department of Education's harmful borrower defense rule from going into effect.

Mr. Speaker, I first want to recognize the hard work of the gentlewoman from Nevada, Representative Susie Lee, for her tireless efforts in protecting students, particularly student veterans, from predatory schools.

Borrower defense is a valuable tool to provide relief to student borrowers who are defrauded by predatory institutions. Unfortunately, instead of using the Department's authority to make borrowers whole and give students a second chance at a quality education, it has gone out of its way to prevent victims of fraud from getting relief.

The Department's rewrite of the borrower defense rule, which is set to go into effect on July 1, will mean that a vast majority of defrauded student borrowers will get virtually no relief. Even in cases where a school clearly violates the law, defrauded victims can still be denied relief under the rule if they can't show that the school intentionally defrauded them or they can't file their claim fast enough or they can't document, according to the flawed Department methodology, exactly how much harm they suffered due to fraud.

Even those student borrowers who do receive partial relief will receive significantly less relief than before. Under Secretary DeVos, the average loan discharge amount for approved borrowers has dropped from about $11,000 to about $500, and for many students zero relief will be available even though they can prove massive fraud.

Class actions are not allowed under the rule. Each student must bring an individual case even though the school may have been found to have been guilty of egregious systemic fraud.

Democrats and Republicans came together earlier this year to pass a Congressional Review Act resolution that rejects this rule and prevents the Department of Education from denying borrowers the relief they deserve. A broad coalition, including veterans and military groups, consumer advocates, student advocates, and civil rights groups, called on the President to sign the congressional resolution and protect student borrowers from predatory schools; but, while the President initially indicated support for the resolution, he ultimately chose to veto it.

Today the House has one final opportunity to ensure that defrauded students get the relief they deserve by overriding that veto.

Mr. Speaker, I urge my colleagues to vote to override the President's veto.

Foxx), who is the ranking member, and I reserve the balance of my time.

BREAK IN TRANSCRIPT

Mr. SCOTT of Virginia. Bonamici), the chair of the Subcommittee on Civil Rights and Human Services.
BREAK IN TRANSCRIPT

Mr. SCOTT of Virginia. Adams), the chair of the Workforce Protections Subcommittee and also chair of the HBCU Caucus.

BREAK IN TRANSCRIPT

Mr. SCOTT of Virginia. Jayapal), a distinguished member of the Committee on Education and Labor.

BREAK IN TRANSCRIPT

Mr. SCOTT of Virginia. Wild), a distinguished member of the Committee on Education and Labor.
BREAK IN TRANSCRIPT

Mr. SCOTT of Virginia. Waters), the chair of the Committee on Financial Services.

BREAK IN TRANSCRIPT

Mr. SCOTT of Virginia. DeLauro), the chair of the Appropriations Subcommittee on Labor, Health and Human Services, Education, and Related Agencies.

BREAK IN TRANSCRIPT

Mr. SCOTT of Virginia. Mr. Speaker, before I yield to the gentleman from Rhode Island, I would like to remind our colleagues that just yesterday a Federal court ruled that the Department of Education must provide full relief for 7,200 defrauded Massachusetts student borrowers who attended Corinthian Colleges. Unfortunately, there are still borrowers around the country still waiting for relief.

BREAK IN TRANSCRIPT

Mr. SCOTT of Virginia. Porter), a member of the Financial Services and Oversight and Reform Committees.

BREAK IN TRANSCRIPT

Mr. SCOTT of Virginia. Mr. Speaker, could you advise how much time is remaining on each side?

BREAK IN TRANSCRIPT

Mr. SCOTT of Virginia. Finkenauer).

BREAK IN TRANSCRIPT

Mr. SCOTT of Virginia. Tlaib), a member of the Financial Services Committee and Oversight and Reform Committee.

Mr. Speaker, we have heard a lot about $11 billion. Let me tell you exactly what that is. That is $11 billion that students who have been defrauded will now have to pay if this resolution fails.

According to the fraud formula from the Department of Education, even those who can prove fraud can expect relief, on average, to go from about 50 percent of their debt down to 3 percent of their debt. Many, because of that formula, will get absolutely nothing.

Mr. Speaker, now is the time that we have a choice. We can give relief to students, especially veterans who have been defrauded by predatory colleges, or make them pay student loans even though they received a worthless educational experience.

Mr. Speaker, I urge my colleagues to side with the students and vote ``yes'' on this resolution.

BREAK IN TRANSCRIPT

Source