Tags: Education | student loans | regulations | college | education

Experts: Student Loan Regulations Could Exceed $43 Billion Estimate

Image: Experts: Student Loan Regulations Could Exceed $43 Billion Estimate

(Photo by Chris Radburn/Press Association via AP Images)

By    |   Monday, 15 Aug 2016 12:29 PM

The Obama administration's call for new regulations on student loans could cost more than the $43 billion that the Department of Education estimated, according to experts in a Washington Free Beacon report.

Universities might also face lawsuits because of the rule that lowers the threshold for lawsuits to any misrepresentation, according to The Hill

"All students who are defrauded deserve an efficient, transparent, and fair path to the relief they are owed," Secretary of Education John King, Jr. said in a statement in the Hill report.

American Commitment president Phil Kerpen slammed the proposal, saying, "We're sitting on over a trillion in student debt, and under this rule anybody whose career didn't turn out as planned could come up with a 'statement or omission with a tendency to mislead.'"

Also, Kerpen said that lawmakers do not know how much the regulations will cost.

"Bureaucrats are proposing a rule that imposes costs — they think — of at least $2 billion and quite possibly $40 billion or more on taxpayers. What kind of insane range is that?" he asked.

Franklin Center policy director Kevin Glass said that some schools that could face lawsuits if the regulation is launched because of their claims at having high job placement for graduates. Those schools, Glass said, include Georgetown University, University of Texas, University of Michigan, University of Virginia, and Vanderbilt University.

"Many of them advertise very, very high 'job placement' rates and either count those who have pursued further education as 'placements' or omit them from their placement statistics entirely — or don't specify if the degree earned actually helped them get the jobs they claim credit for," Glass said.

David Baime of the American Association of Community Colleges told the Wall Street Journal that attorneys could look through colleges' advertising to find reasons for legal action.

"In theory a student could say, 'I took English 101 and you didn't teach me Shakespeare, and the course description said you'd provide a solid foundation in Western literature," Baime said.

Kerpen called for Congress to debate any loan forgiveness program, and it shouldn't be activated through "regulatory decree."

"Student debt is an explosive issue, not just politically but fiscally," Kerpen said.

© 2017 Newsmax. All rights reserved.

 
1Like our page
2Share
Newsfront
The Obama administration's call for new regulations on student loans could cost more than the $43 billion that the Department of Education estimated, according to experts in a Washington Free Beacon report.
student loans, regulations, college, education
364
2016-29-15
Monday, 15 Aug 2016 12:29 PM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
America's News Page
© Newsmax Media, Inc.
All Rights Reserved