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Young Invincibles’ Statement on Department of Education’s Borrower Defense Rule


June 13, 2016

Nina Smith,, 301-717-9006

Young Invincibles’ Statement on Department of Education’s Borrower Defense Rule

WASHINGTON — Following the release of a draft rule for student borrowers who have fallen victim to predatory for-profit institutions, Young Invincibles, a leading research and advocacy group, expressed support for beefed up consumer protections for distressed borrowers.

Jen Mishory, executive director of Young Invincibles, released the following statement on the Department of Education’s draft proposal, which now enters a 45-day comment period before final implementation:

“We’re encouraged by the scope of protections included in this latest version of the Department of Education’s borrower defense regulation, which makes it easier for students to discharge their loans if their school has engaged in illegal or deceptive practices. The draft proposal widens the window during which a student can file a claim, and provides clearer guidance to borrowers about what qualifies as fraud or misrepresentation by an institution. There are also increased, though at times discretionary, avenues for group or automatic discharge of debt, and a welcome ban on forced arbitration and gag rules.

These improvements are a big step forward for defrauded students, who for far too long bore the burden of proof in the legal process. We look forward to the comment period to raise up the voices of students looking for a clear, automatic path to debt relief after schools have engaged in illegal practices.”

Recent investigations have revealed rampant fraud and weak consumer protections for victims who suffer at the hands of predatory institutions, and providing borrowers an accessible pathway to relief from debt will be critical to helping students trying to rebuild their lives. YI has actively worked to address weaknesses in the process for borrowers and will continue to lift up the voices of student victims to ensure the Department’s final rule strengthens protections that provide critical relief throughout the legal process.