Statement on Federal Court Victory for Student Loan Protections

Zero-Debt Advocates Applaud AG Maura Healey For Her Leadership Fighting for Students Defrauded by For-Profit Colleges

BOSTON — Bob Hildreth, President of the Hildreth Institute, today issued the following statement regarding a new federal court decision that clears the way for an Obama-era policy that will make it easier for defrauded students to get their student loans forgiven:

“This court ruling is a major victory for thousands of students across the country who were defrauded by predatory for-profit colleges taking advantage of our broken student loan system. We commend Attorney General Maura Healey for her leadership fighting for students who were left with thousands of dollars in debt after their for-profit colleges collapsed.”

“The federal student loan system creates perverse incentives that enable bad actors to prey on students. Without adequate protections for students, these predatory corporations will continue to base their business models on the availability of these loans, with little commitment to providing quality education.”

“At Hildreth Institute, we fight for zero-debt college because we believe that student loans are not the right financial aid tool for our students or their families. We need to move to a zero-debt system that makes college affordable to all, without leaving students mired in debt.”

Background

Politico, Court win for student loan protections a setback for DeVos: “A federal court on Tuesday cleared the way for Obama-era student loan borrower protections to take effect, handing a defeat to Education Secretary Betsy DeVos after she fought for more than a year to stop the rules…Maura Healey, the Democratic attorney general of Massachusetts [led] a group of 18 states to challenge DeVos’ postponement of the rules…The rules, which were created in the wake of the collapse of for-profit college giants Corinthian Colleges and ITT Tech, outline how defrauded students can have their federal loans discharged. They also prohibit colleges from requiring students to resolve complaints through arbitration rather than in court. In addition, the rules would give the Education Department more power to take action against financially risky troubled colleges.”

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Hildreth Institute, a non-profit organization, was established in 2018 to pull the curtain back on the unsustainable higher education system in America — the direct result of a flawed financial aid system. Founded by Bob Hildreth, a passionate advocate of college affordability issues and a champion of many education initiatives, the Institute aims to increase awareness among students, families, and higher education institutions about the student debt crisis and — through research, grassroots advocacy, and mobilization — lay the path to a #ZeroDebt future. Hildreth Institute is a member of the national Higher Ed, Not Debt coalition, a campaign of dozens of organizations dedicated to tackling the crippling and ever-growing issue of student loan debt in America.