DeLauro Applauds Cardona for Answering Call to Establish a Stronger Process for Recouping Funds from Predatory Colleges

WASHINGTON, DC — House Appropriations Committee Chair and Labor, Health and Human Services, Education, and Related Agencies Appropriations Subcommittee Chair Rosa DeLauro (CT-03) issued the following statement on revisions by the U.S. Department of Education to its proposed process for recouping funds from predatory institutions under Borrower Defense:

"I am pleased that under Secretary Cardona's leadership, the Department of Education strengthened its proposed process for recouping funds from predatory institutions that commit wrongdoings against student borrowers. As I recommended in my October letter to the Secretary, the Department is now proposing a recoupment process that is automatic and formalized rather than optional. In addition, the proposal makes clear that predatory schools will be liable for any amounts discharged through the Borrower Defense process except under certain reasonable circumstances.

"I believe a strong Borrower Defense rule will provide swift relief to borrowers who were harmed and put predatory for-profit colleges on notice that there will be straightforward, substantial financial consequences for any unscrupulous behavior that leads to a successful claim. I will continue to work with the Department to explore additional opportunities to protect student borrowers and hold predatory institutions accountable."