News By/Courtesy: Daksh Dave | 29 Jun 2020 23:12pm IST

HIGHLIGHTS

  • Student Loan
  • Education
  • Trump

In a major victory for Education Secretary Betsy DeVos, House Democrats failed to override Trump's veto of a major student loan forgiveness bill by a vote of 238-173. A two-thirds majority is needed to override a presidential veto. Last month, Trump vetoed Congressional legislation that would overturn the key student loan forgiveness rule drafted by DeVos and the U.S. Department of Education. The U.S. in March. Senate voted 53-42 to overturn a new student loan forgiveness rule that critics say would limit student loan forgiveness to students when a college closes due to fraud. All of the Senate Democrats and 10 Republicans voted on a bipartisan basis. In January, the House of Representatives overturned the rule by a vote of 231-180.

New student loan forgiveness rules will be introduced as of 1 July 2020. Student loan waiver laws are known as the borrower protection for repayment, which requires borrowers to get their federal student loans forgiven if a school uses unethical or misleading tactics to induce borrowers to borrow debt to attend school. However, without these rules, students could have to repay federal student loans even if they did not find a job or finish their degree before their school closed. Trump's veto does not affect public sector loan forgiveness or student loan forgiveness by income-driven repayment. DeVos rewrote the rules — which were drafted under the Obama administration — to restrict the criteria for student loan forgiveness. Why? Why? DeVos has sought to strike a balance between the interests of students and taxpayers. DeVos argues that too many borrowers will apply for student loan forgiveness under the Obama-era guidelines, eventually costing taxpayers billions of dollars in excessive student loan forgiveness. DeVos believes that its student loan forgiveness rules would save taxpayers $11 billion over 10 years. That said, DeVos doesn't want to prohibit the student's loan waiver from covering the borrower 's protection. Rather, DeVos is of the view that student loan repayment should not be automatic. DeVos said that borrowers affected by school closure would need to apply for student loan forgiveness and prove financial harm. Borrowers would also have three years to prove their claim for student loan forgiveness. Opponents, including some veterans' organizations, are opposed to the new regulations, which they argue unnecessarily harm veterans who have been defrauded by colleges and who will seek student loan forgiveness. Opponents also contend that the new legislation would restrict the number of student loans issued to borrowers. 

THIS ARTICLE DOES NOT INTEND TO HURT THE SENTIMENTS OF ANY INDIVIDUAL, COMMUNITY, SECT, OR RELIGION ETCETERA. THIS ARTICLE IS BASED PURELY ON THE AUTHOR'S PERSONAL VIEWS AND OPINIONS IN THE EXERCISE OF THE FUNDAMENTAL RIGHT GUARANTEED UNDER ARTICLE 19(1)(A) AND OTHER RELATED LAWS BEING FORCE IN INDIA, FOR THE TIME BEING. 

Section Editor: Pushpit Singh | 30 Jun 2020 7:56am IST


Tags : Student Loan

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