Nonprofits Are Vulnerable, Too
Education Department's proposed rule for student debt forgiveness could threaten traditional colleges as well as for-profits, particularly over its broad view of what counts as misrepresentation.
By Paul Fain, Inside Higher Ed
WASHINGTON -- For-profit colleges and their advocates are aggressively fighting the Obama administration’s proposed rule for federal loan forgiveness, arguing that the regulation is subjective and overly broad, and will “crush” the sector while costing taxpayers many billions of dollars.
Yet for-profits aren’t the only ones fretting about the rule, which is slated to go into effect next year if enacted. Many nonprofit colleges also face financial and reputational challenges due to the scope of the so-called borrower-defense-to-repayment proposal, said lawyers and several traditional higher education groups.