Biden Administration Proposes Significant and Concerning Overhaul to Borrower Defense Regulations

Career Education Colleges and Universities (CECU)

7/6/2022

Arlington, VA – Today, the U.S. Department of Education published the unofficial version of its Notice of Proposed Rulemaking (NPRM) on borrower defense to repayment (BDR), along with six other issues negotiated last year. The public will have 30 days to submit written comments once the Department publishes the official NPRM in the Federal Register.

“We are disappointed that the Biden administration continues to pursue a borrower defense agenda that is not grounded in any existing statute, and that suffers from inadequate due process protections. For students who allege that they have been defrauded, there should be a careful and deliberative process for considering and resolving their claims. Any process the Department implements must be fair to students, institutions, and taxpayers alike,” said CECU’s President and CEO, Dr. Jason Altmire. “However, today’s proposed rule sends a clear and troubling message that the Department intends to use the rulemaking process to discharge federal student loans en masse while hurting unfavored institutions and their students in the process. This is an unprecedented expansion of the Department’s authority that was never contemplated by Congress and that will have substantial negative economic consequences on institutions and taxpayers.”

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About Career Education Colleges and Universities
Career Education Colleges and Universities (CECU) is the national association serving the proprietary higher education sector.

Please direct media inquiries to Jenny Faubert, VP of Communications, at Jenny.Faubert@career.org.

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