Proposal Would Raise the Bar for Borrowers Seeking Loan Relief

The Department of Education will propose next week that borrowers be required to demonstrate their institution intended to mislead them before they can have their loans discharged.

Student advocates say that would effectively mean no borrowers are able to get relief on their student loan debt through a provision of federal statute known as borrower defense to repayment.

Education Secretary Betsy DeVos and the Department of Education are in the midst of an overhaul of borrower-defense regulations through a negotiated rule-making process launched after DeVos blocked a 2016 Obama administration rule from taking effect. Department officials will make the proposal at the second round of meetings between negotiators from a wide range of interest groups.

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