By Joey Solitro
Published 27 October 2023
The Biden Administration issued final regulations aimed at bolstering oversight and accountability for higher education institutions and improving protections for student borrowers.
The new rules, effective July 1, 2024, significantly strengthen the Department of Education’s (DOE) ability to protect students and taxpayers. This comes in response to issues of sudden college closures, as the Biden Administration emphasized the importance of creating warning signs to facilitate the securing of financial protections for students.
The regulations require colleges to:
- Provide clearer and more comparable information on financial aid.
- Prohibit the withholding of transcripts for federally funded courses.
- Ensure adequate career services are available.
- Limit employment of individuals with a history of mismanaging federal student aid programs.
Raising the Bar for Higher Education Accountability
According to U.S. Secretary of Education Miguel Cardona, “Too many students have been abandoned by shady colleges that close their doors and leave borrowers with unaffordable debt and little hope of completing their educational journeys.” He also noted that these new standards aim to provide a solid return on educational investments, consequently enhancing the opportunity for students to achieve the American dream.
The DOE has already approved $127 billion in relief for nearly 3.6 million students, including significant relief for those affected by abrupt college closures or exploitative practices.
With the resumption of student loan repayments this month after a three-year pause, it is vital for borrowers to stay informed about available tax breaks to mitigate their financial burdens.
If you believe you are a victim of fraud by your educational institution, it’s advisable to seek assistance through the borrower defense loan discharge process, ensuring that your rights are protected.
