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Jennifer Sanctuary

Department of Education Finalizes Financial Accountability Rules for Private Institutions

2016-11-21

On November 1, the Department of Education (ED) published final borrower defense rules, providing student loan borrowers a more transparent process when filing borrower defense-to-repayment claims.

ED has established a number of additional new protections, many of which are covered in its summary of major provisions. Also introduced are new financial responsibility requirements for independent nonprofit and for-profit institutions that participate in the federal student aid programs. The final rule takes effect on July 1, 2017.