Trump team halts rules meant to protect students from predatory for-profit colleges

The Trump administration is suspending two key rules from the Obama administration that were intended to protect students from predatory for-profit colleges, saying it will soon start the process to write its own regulations.

The move made Wednesday by Education Secretary Betsy DeVos was a victory for Republican lawmakers and for-profit colleges that had lobbied against the rules. Critics denounced it, accusing the administration of essentially selling out students to help for-profit colleges stay in business.

The Education Department released a statement saying that it was going to create new committees to rewrite rules covering borrower defense to repaying, or BDR, and gainful employment. BDR relieves students of all federal loans if a school used illegal or deceptive tactics to persuade students to borrow money to attend. Gainful employment requires that action be taken — including possible expulsion from the federal student aid program — against vocational programs whose graduates leave with heavy student loan debt. Ninety-eight percent of the programs that officials found to have failed to meet those standards are offered by for-profit colleges.

Parts of the gainful employment rule are already in effect. BDR was set to become effective July 1 but will now be postponed. The Education Department said that while new rules are drawn up, it will process applications under the current borrower defense rules.

A program is considered to lead to “gainful employment” if the annual loan payment of a typical graduate does not exceed 20% of their discretionary income or 8% of their total earnings. Exceeding those debt-to-earnings rates means possible expulsion from the federal student aid program.

DeVos criticized the regulations that were approved by the Obama administration, saying that they are unfair to students and schools and that they leave taxpayers with a big bill.

“Fraud, especially fraud committed by a school, is simply unacceptable,” she said in her department’s statement. “Unfortunately, last year’s rule-making effort missed an opportunity to get it right. The result is a muddled process that’s unfair to students and schools, and puts taxpayers on the hook for significant costs. It’s time to take a step back and make sure these rules achieve their purpose: helping harmed students. It’s time for a regulatory reset. It is the department’s aim, and this administration’s commitment, to protect students from predatory practices while also providing clear, fair and balanced rules for colleges and universities to follow.”

The American Federation of Teachers pushed back against the decision.

“The Trump administration’s actions today show that the White House stands with predatory for-profit schools, not the students they rip off,” it said in a statement. “About the only thing worse than ripping off students with worthless degrees from for-profit colleges is denying them help to relieve their substantial debt, and allowing the schools to continue to prey on students. Given that for-profit colleges were big donors to Trump and other Republican candidates, one wonders whether this is simply a new pay-to-play scheme at the expense of our students, including our veterans, who are much helped by the rules Education Secretary Betsy DeVos wants to eliminate.”

Not everyone in higher education opposed the administration’s move, however. The Chronicle of Higher Education reported that the United Negro College Fund and the National Assn. for Equal Opportunity in Higher Education — which represent historically black colleges and universities, or HBCUs — sent a letter to DeVos this week urging her to put a hold on the implementation of the regulations and reconsider them.

“We remain concerned about the sweeping scope of the regulation and vague standards for determining ‘misrepresentation’ that could unfairly leave HBCUs and PBIs liable for frivolous claims, unwarranted fines, and unfounded penalties,” they said in the letter. “Such provisions could result in significant costs that would divert precious resources better spent on serving the needs of students.”

The nonprofit consumer advocacy group Public Citizen and the Project on Predatory Student Lending smacked DeVos’ move, saying in a statement that she had “put the profit margins of for-profit colleges ahead of the interests of students and their families” in “a craven attempt to avoid the agency’s legal obligation” to enforce the rules. The statement cited a part of the Obama-era rules that included a ban on the use of forced arbitration clauses in many student enrollment contracts:

“These clauses require students to submit any dispute that might later arise between the students and the institution to binding arbitration, a private process with little right to appeal, instead of a court of law. The rules also provide new and long-needed protections for students asserting defenses against repayment of their federal loans based on fraud or other misconduct by the students’ schools.”

[The Los Angeles Times]

DeVos ‘Not Going to Be Issuing Decrees’ on Civil Rights Protections

U.S. Education Secretary Betsy DeVos clashed with Democratic lawmakers on Tuesday over protections for LGBT students, balking when asked directly if she would ban private schools from receiving federal funds if they discriminate against these students.

The Trump administration wants to invest millions into an unprecedented expansion of private-school vouchers and public-private charter schools, prompting critics to worry that religious schools, for example, might expel LGBT students or, more broadly, that private schools might refuse to admit students with disabilities. Testifying before a Senate Appropriations subcommittee, DeVos told Sen. Patty Murray, D-Wash., “Let me be clear: Schools that receive federal funds must follow federal law. Period.”

But after another Democrat, Sen. Jeff Merkley of Oregon, pointed out that federal law is “somewhat foggy” surrounding LGBT student protections, DeVos simply repeated that schools must follow federal law, adding, “Discrimination in any form is wrong.”

Merkley pressed again, asking DeVos point-blank whether private and charter schools receiving federal funds under Trump’s budget proposal could discriminate against students based on sexual orientation or religion.

She said the department “is not going to be issuing decrees” on civil rights protections.

Merkley asked Sen. Roy Blunt, R-Mo., who chairs the subcommittee, to note that DeVos refused to directly answer the question.

DeVos came under fire last month for a nearly identical exchange, refusing to tell a House Appropriations subcommittee whether she would block federal voucher funding to private schools that discriminate against LGBT students. U.S. Rep. Barbara Lee, D-Calif., told DeVos, “To take the federal government’s responsibility out of that is just appalling and sad.”

DeVos’ spokeswoman later said the controversy stemmed from a “fundamental misunderstanding” by lawmakers about what the secretary was talking about. On Tuesday, DeVos sought to clarify that she wasn’t talking about a specific voucher proposal. “It is really appropriations language,” she said.

During the nearly two-and-a-half-hour hearing, DeVos defended the Trump administration’s proposed $9 billion cut to education, saying the planned 13% reduction in funding may seem shocking, but it’s necessary.

“I’ve seen the headlines, and I understand those figures are alarming for many,” DeVos told lawmakers, according to her prepared testimony. The proposed 2018 budget, she said, refocuses the department on supporting states and school districts in their efforts to provide “high-quality education” to all students while simplifying college funding, among other efforts.

Overall, Trump plans to eliminate or phase out 22 programs that the administration says are “duplicative, ineffective, or are better supported through state, local, or private efforts.”

The administration wants to cut teacher training, vocational training and before- and after-school programs, among others. It also wants to eliminate subsidized loans and a new loan forgiveness program for students who commit to public service after college. Trump wants to funnel the savings into several school choice proposals — including a $250 million fund for expanding public funding of private-school vouchers.

The proposal faces an uphill battle in Congress. On Tuesday, Blunt, a Republican, called it “a difficult budget request to defend,” saying deep cuts to programs like after-school would be “all but impossible” to get through the committee.

Sen. Patrick Leahy, D-Vt., said Trump’s budget request “can be summed up in one word: abysmal.”

As she has recently, DeVos on Tuesday took a swat at past federal efforts to reform education, noting that discretionary spending at the U.S. Department of Education quadrupled between 1989 and 2016, from $17.1 billion to $68.3 billion.

The “seemingly endless” reform efforts, she said, have been top-down and have generated “more publicity than results,” failing to close long-standing achievement gaps between white, middle-class students and their low-income and minority peers. They’ve also produced disappointing results for high school graduation and college completion rates.

While achievement has been mixed in recent decades, high school graduation and college completion rates have actually risen, sometimes sharply. Federal data show that in 2015, the graduation rate for public high school students rose to a record-high 83%. U.S. colleges also awarded more degrees — 961,167, up 35.2% from a decade earlier.

A GOP mega-donor and four-time chair of the Michigan Republican Party, DeVos previously ran an organization that promotes private-school choice. DeVos last month called school choice critics “flat-earthers” and said expanding families’ educational choices is a way to bring U.S. education “out of the Stone Age and into the future.”

On Tuesday, she said more choice would help families in more ways than one, noting that when parents decide proactively which school their child should attend, “there’s a lot more engagement, naturally, as a result of that.”

Media

 

 

Betsy DeVos Press Release Celebrates Jim Crow Education System as Pioneer of “School Choice”

Donald Trump met Monday at the White House with the leaders of a number of historically black colleges and universities. Secretary of Education Betsy DeVos commemorated the meeting with one of the more bonkers statements you will ever see a 21st century politician make, somehow twisting an attempt to bring up her pet issue of school choice into praise for the segregated higher education system of the Jim Crow South:

First of all, it sounds like a seventh-grader wrote this, which is perhaps what happens when you put someone who has never really had a real job in charge of the Department of Education. Second, this official 2017 federal government press release celebrates legal segregation (!!!) on the grounds that the Jim Crow education system gave black students “more options,” as if there was a robust competition between HBCUs and white universities for their patronage. (When black Mississippian James Meredith chose the “option” of enrolling at the University of Mississippi in 1962, a massive white mob formed on the campus; two people were shot to death and hundreds injured in the ensuing battle/riot, during which federal marshals came under heavy gunfire, requiring the ultimate intervention of 20,000 U.S. soldiers and thousands more National Guardsmen.)

DeVos is delivering the keynote address Tuesday at an HBCU event at the Library of Congress. Should be interesting.

(h/t Slate)

 

1 2 3 4