Trump Vetoes Bill That Helps Defrauded Students To Get Loan Forgiveness
On Friday, President Donald Trump vetoed a measure to stop Education Secretary Betsy DeVos‘ new rule scheduled to be effective on July 1, which will make it harder for the defrauded students to have their federal loans erased.
DeVos has been pushing to amend the standard on how defrauded students could get loan forgiveness. The new rule DeVos argues will make it harder for the victims to get their loans forgiven than the standard initially made during the Obama administration.
The move to stop DeVos from implementing her new rule was sponsored by Rep Susie Lee (D-Nevada).
“It’s clear the 2019 rule will weaken both protections for students and oversight of shady schools while forcing taxpayers to foot the bill for the fraudulent actions of a few bad actors,” Lee said.
DeVos has been defending her new rule by suggesting that it would save an estimate of $11 billion over the next decade.
The loan forgiveness rule was made during President Barack Obama‘s administration, which erased debts of students affected by Corinthian Colleges and ITT Tech, institutions that closed down in 2015 and 2016, respectively.
Trump’s decision to veto may lead to a backlash from veterans. Veteran communities have been asserting that the discharged vets who seek higher education are among the main targets of fraudulent schools.