Saturday, August 11, 2018

TRUMP ADMIN V. STUDENTS, REMOVING FRAUD PROTECTIONS



President Trumps campaign to lessen the federal regulation burden of the private sector has hurt consumers. That perhaps was the real reason for the campaign.  Its obvious that Trump cares about corporate profits, but little about fairness and protection for average American consumers. 

Here’s the latest White House move to hurt consumers through “deregulation

Trump’s Secretary of Education, Betsy DeVos “ formally moved Friday to scrap a regulation that would have forced for-profit colleges to prove that the students they enroll are able to attain decent-paying jobs, the most drastic in a series of policy shifts that will free the scandal-scarred, for-profit sector from safeguards put in effect during the Obama era.

In a written announcement posted on its website, the Education Department laid out its plans to eliminate the so-called gainful employment rule, which sought to hold for-profit and career college programs accountable for graduating students with poor job prospects and overwhelming debt. The Obama-era rule would have revoked federal funding and access to financial aid for poor-performing schools. . . .

But in rescinding the rule, the department is eradicating the most fearsome accountability measures — the loss of federal aid — for schools that promise to prepare students for specific careers but fail to prepare them for the job market, leaving taxpayers on the hook to pay back their taxpayer-backed loans.

The DeVos approach is reversing nearly a decade of efforts to create a tough accountability system for the largely unregulated for-profit sector of higher education. In recent years, large for-profit chains, which offer training for everything from automotive mechanics to cosmetology to cybersecurity, have collapsed under mountains of complaints and lawsuits for employing misleading and deceptive practices.

The implosions of ITT Technical Institute and Corinthian Colleges generated tens of thousands of complaints from student borrowers who said they were left with worthless degrees. The Obama administration encouraged the expansion of public community colleges as it forgave at least $450 million in taxpayer-funded student debt for for-profit graduates who could not find decent jobs with the degrees or certificates they had earned.

The regulations passed in the wake of those scandals remade the industry. Since 2010, when the Obama administration began deliberating the rules, more than 2,000 for-profit and career programs — nearly half — have closed, and the industry’s student population has dropped by more than 1.6 million, said Steve Gunderson, the president of Career Education Colleges and Universities, the for-profit industry’s trade association.”


 

 

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