U.S. Department of Education (ED), Office of Federal Student Aid (FSA), Consumer Financial Protection Bureau (CFPB)

The following titles, parts, and sections of the Code of Federal Regulations (CFR) should be rescinded to restore borrower protections, ensure institutional accountability, and address the systemic issues caused by previous deregulatory actions, especially regarding for-profit colleges and loan forgiveness programs: 34 CFR Part 668 – Student Assistance General Provisions Sections to Rescind: Subparts Q and R (covering borrower defense and institutional accountability). Targeted Rescission: Rescind regulatory changes that weakened borrower defense protections and institutional accountability measures for for-profit colleges. Restore stronger protections that ensure students who have been defrauded by institutions can access loan forgiveness and discharge options. 34 CFR Part 685 – William D. Ford Federal Direct Loan Program Sections to Rescind: §§ 685.206, 685.214, 685.222 (related to borrower protections and repayment discharge). Targeted Rescission: Rescind changes that complicated borrower access to discharge and forgiveness programs. Simplify the forgiveness process by ensuring all qualifying payments are counted, loan types are standardized, and borrower eligibility is clearly defined. 34 CFR Part 682 – Federal Family Education Loan (FFEL) Program Targeted Rescission: Rescind eligibility restrictions that exclude FFEL borrowers from Income-Driven Repayment (IDR) forgiveness and other borrower protections. Extend eligibility to FFEL borrowers to ensure they have the same access to loan forgiveness and discharge options as Direct Loan borrowers. For-Profit Colleges and Deregulatory Waivers (2018–2020) Targeted Rescission: Rescind regulatory guidance and waivers that allowed for-profit colleges to continue participating in federal student aid programs under weakened accountability standards. Reinstate stricter standards for institutional accountability to ensure that federal funding is not used to support fraudulent or predatory practices in for-profit educational institutions.

For-Profit College Oversight Rollbacks and Loan Servicing Deregulation Measures

Regulatory rollbacks have allowed low-quality for-profit institutions and abusive loan servicers to exploit students and taxpayers. Restoring protections will improve educational outcomes, reduce loan default rates, and ensure federal aid is used to support quality, accountable institutions.

U.S. Department of Education 400 Maryland Avenue, SW Washington, DC 20202

Federal Student Aid Information Center Phone: 1-800-4-FED-AID (1-800-433-3243) Email: studentaid@ed.gov

Between 2017 and 2020, multiple oversight protections were rolled back or diluted—such as borrower defense rules, gainful employment standards, and third-party loan servicer accountability. These changes allowed predatory institutions and servicers to operate with minimal enforcement, often targeting low-income, military, and first-generation students. Investigations have linked these deregulatory actions to increased borrower distress, institutional closures, and waste of federal funds.

Rescinding these loopholes restores basic accountability. It ensures that schools receiving federal student aid deliver legitimate value, that loan servicers act in borrowers' best interests, and that student protections are not undermined by profit-driven interests. Taxpayer money should support education, not exploitation.

Federal student aid regulations shall prohibit Title IV eligibility for institutions failing gainful employment and borrower defense criteria. Loan servicers must comply with heightened federal oversight, standardized borrower communication practices, and transparent error correction mechanisms. For-profit institutions will be subject to reinstated rules on program outcomes, marketing honesty, and revenue-source limitations.

Linda E McMahon

Secretary of Education