Colleges nationwide have received a wave of complaints that they have misled applicants financially as the Biden administration fights to expand regulations for federal student loan forgiveness.
Most recently, the Education Department said Tuesday it would fine the nation’s largest Christian university a record $37.7 million and encourage more than 7,500 former students to file federal borrower defense to repayment, or BDR, claims to cancel their loan debts.
“To say it’s messy is an understatement, and it’s scary for people,” Sarah Flanagan, vice president for government relations and policy development at the National Association of Independent Colleges and Universities, a network of nonprofit private schools, told The Washington Times. “They’re getting copies of complaints that are silly, and they don’t know how to respond.”
They say the number of claims sent to nonprofit schools since July includes 90 at one public university, 100-200 at several private campuses and at least one at nearly every other campus. It remains unclear how many were filed recently and how many are older. “The mere transmission of a claim to the school is not an indicator of the claim’s merits or its likelihood of approval or denial,” the spokesperson said. “Whether to respond is up to the school. Furthermore, all claims must meet the applicable regulatory standard regardless of whether the school chooses to respond to notice of the claim.”
A federal appeals court has temporarily blocked the administration from enforcing those regulations, pending the outcome of a legal challenge that a trade group of for-profit colleges filed in Texas.
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