Delayed Obama for-profit fraud protection ordered into force

Students defrauded by for-profit colleges scored an important victory when a court cleared the way for an Obama-era policy that will make it easier for them to get their student loans forgiven.

Education Secretary Betsy DeVos had said the regulation, known as borrower defense, made discharging loans too easy and was unfair to taxpayers. The rule was due to take effect in July 2017, but DeVos froze it until she issued a new policy in its place.

But U.S. District Judge Randolph Moss ruled last month that DeVos' delay was unlawful. Yesterday, he denied a request by an organization representing for-profit colleges in California, to further postpone the rule, thus paving the way for borrower defense to enter into force.

An attorney with Public Citizen, who is representing the defrauded students in their suit against DeVos Julie Murray says "the rule is finally in effect. No more excuses. No more delays.”

Education Department press secretary Liz Hill said last week that the agency respects the court's decision and won’t try to further delay the rule, but will keep working on revising the policy.