The Biden Administration Is Still Allowing For-Profit Colleges to Scam Student Borrowers
In the wake of student debt forgiveness, for-profit colleges are still defrauding students with loans they can’t pay back. The Trump administration repealed an Obama-era law meant to punish them — and Joe Biden’s Education Department has yet to reinstate it.
Joe Biden speaking with attendees at the 2019 Iowa Democratic Wing Ding at Surf Ballroom in Clear Lake, Iowa, on August 9, 2019. (Gage Skidmore / Flickr)
When President Joe Biden recently announced his student debt cancellation plan, he declared that his administration is “holding colleges accountable for jacking up costs without delivering value to students.”
However, Biden’s Education Department is delaying the reinstatement of a rule that would punish schools that leave graduates with unmanageable debt or low earnings.
Experts say such a rule — which was repealed by the Trump administration — would be “one of the single-best tools” that could prevent schools from ripping off taxpayers and saddling students with more debt. But Biden’s administration has so far delayed action amid a well-financed lobbying blitz from the for-profit college industry, which once employed Biden’s top adviser.
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