U.S. News


Obama-era Student Loan Relief Program Can Now Take Effect

Education Secretary Betsy DeVos postponed the program last year.
Posted at 4:13 PM, Oct 16, 2018

A federal judge ruled Tuesday that an Obama-era student loan relief program can take effect immediately.

The Borrower Defense to Repayment rule is meant to protect students from for-profit colleges that violated the law or took advantage of vulnerable people. Borro  wers can apply to have their student loans forgiven if their school is found to have engaged in predatory lending.

For some background: The Obama-era rule was set to take effect in July 2017. But weeks before that, Education Secretary Betsy DeVos postponed the regulations. Nineteen states and the District of Columbia sued to delay her postponement. And in September, a judge sided with the 19 states and the district, ruling her delay of the program was "unlawful."

The Education Department said it would not file a new delay.

Additional reporting from Newsy affiliate CNN.