VETERANS GROUPS CONCERNED WITH DEVOS ‘BORROWER DEFENSE’ PLAN: Groups representing veterans and military servicemembers say they’re alarmed by a Trump administration plan that would require defrauded students to default on their loans before they’re eligible to apply for debt relief.
Education Secretary Betsy DeVos’ proposal to rewrite the Obama-era “borrower defense to repayment” regulations says the administration is considering that as a strategy to cut down on frivolous claims. Under the plan, borrowers would have to default on their loans and face a collections action (like wage garnishment) before they’re allowed to apply for debt relief.
