“Trump administration rolls back protections for people in default on student loans”

That's the name of this article by Danielle Douglas-Gabriel.

Some background: In mid-2015, the Court of Appeals for the Seventh Circuit held that student-loan guaranty agencies may not assess collection costs against borrowers who enter the federal government’s loan rehabilitation program within 60 days of defaulting on their loans. One of the two judges in the Seventh Circuit majority deferred to a Department of Education "Dear Colleague" letter that maintained that costs could not be lawfully assessed under those circumstances.

The Department has now rescinded its earlier Dear Colleague letter, saying that the issues addressed in the letter "would have benefited from public input." Douglas-Gabriel notes that, in anticipation of possible action by the Department, "Sen. Elizabeth Warren and Rep. Suzanne Bonamici [had last week] sent a letter urging the Education Department to uphold the Obama administration’s guidance on the collection fees, which they said 'results in an unnecessary financial burden on vulnerable borrowers.'"

For more information on the Seventh Circuit case, go here

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