Posted on 08/08/2016 9:16:49 PM PDT by Mr. Mojo
Regulations are flying out the door in in Washington, where an already hyper-aggressive Obama administration is looking at its last chance to move its agenda forward while sidestepping Congress. Many of the expensive rules in areas like energy, health care, and finance have drawn widespread public and media scrutiny – which makes it all the more curious that what is likely to be the single most expensive proposed regulation of the year, a Department of Education rule that would discharge billions in student loans, has gone almost completely unnoticed.
The proposed rule, titled the “Borrower Defense to Repayment Regulations,” would create a stampede to file claims for loan forgiveness based on a newly broadened, vague standard requiring only that a plaintiff allege a school made a “substantial misrepresentation.” This phrase is defined broadly as any “statement” or “omission” with a “likelihood or tendency to mislead under the circumstances.”
For decades students have been able to apply for loan forgiveness when they were victims of intentional fraud or another violation of state law. The proposed rule ditches the requirement that there be any actual legal violation, substituting in a new standard so vague that complaints will proliferate based on innocent errors and alleged misunderstandings – with the costs shifted either onto schools or, ultimately, to federal taxpayers.
Schools will have little recourse to defend against the allegations. Determination of whether an institution has made a “substantial misrepresentation” to a student or group of students is made unilaterally by a hearing examiner at the Department of Education. The examiners, facing sympathetic tales of woe from people who racked up big debt totals, will likely be inclined to approve most of them. State universities and community colleges will consume taxpayer dollars defending themselves even when they prevail. Some schools, flooded with claims, will likely be put out of business, leaving taxpayers on the hook.
The ultimate cost to taxpayers will be astonishing. The department’s own analysis found “a net budget impact in costs over the 2017-2026 loan cohorts ranging between $1.997 billion in the lowest impact scenario to $42.698 billion in the highest impact scenario.”
Let that sink in. Bureaucrats are proposing a rule that imposes costs – they think – of at least $2 billion and quite possibly $40 billion or more on taxpayers. What kind of insane range is that? They clearly have no clue how much this will cost. And who elected the Department of Education to spend our tax dollars at all?
APEX Tech?
The colleges are the ones ripping people off. Stop hiring college graduates.
Colleges are offering too many luxuries, paying too many administrators and teaching too many classes. Trim the fat and the cost would he much more manageable.
I'm not a continual moron...although I've had my moments.
Actually I'm a medical professional...and pretty well read....
I commented on exactly what you said.....
I spit some when I smoke a Cohiba Edicion Diamante......I don't spit when I read things here....
You said what you said...and I replied.
I agree with your last sentence. But disagree with that monies going to "FREE" tuition.
Fair enough?
that’s absurd. I won’t hire anything but college graduates; you just have to be careful of the college, and avoid sh*t degrees.
They don’t write their name on the front of a check, so why should they care....
Obamacare and student loan bailout. What finer examples of failed obamian economics policy than medical insurance deductibles that are so high people cannot afford to see a doctor until they’re near death and students left with massive debt to pay for an unmarketable education.
Well if you’re a medical professional, I guess you are clearly an expert on the 20 billion a year we give to the moslem nations.
Its common sense. That money would be better used on Americans and America. And in a perfect world id like to see it not taxed from me in the first place.
Go take a powder and contribute to the third leading cause of death in America, medical errors. Fair enough?
Think of it as taxpayers paying a private for profit consortium of banks for money other people borrowed. The government does not benefit, but the Federal reserve sure does. Keep those taxes rolling in to buy those zero’s and one’s in a data bank.
“A college education and a $1.50 will buy you a cup of coffee these days and that’s about it.
The education monopoly needs to be destroyed.”
100% correct. And the best way to destroy it is to kill the governmentally guaranteed student loan industry.
“I commented on exactly what you said.....”
I said id rather spend it on student debt than some goat humping moslem nation. Would you rather it go to a moslem? Odd.
I don’t want either done, but id sure rather do something for an American than for ANY foreigner.
... or free food and housing? You are exactly right. There is no end in sight to this kind of nonsense.
Conservatives need to get over this idea of moral hazard. We need to take the cash and run, like they do. They are counting on us being the good guys and paying the bills to keep them afloat. If we demand our cut, too, the system will implode sooner and we can finally start over. :)
How would you know?
Granted....Our "faithful servants" in Washington...pay/bribe/paytoplay numerous entities and countries...That's a fact....
You speak of common sense...and you posted that you think that that money should be give for "FREE COLLEGE" to everyone here in the USA.
That is what I responded to.
Oh...I've made some errors...,in my life. Never killed anyone...in my professional life.
Admit that you are wrong in saying FREE COLLEGE for all...is dumb and wrong..And I will tell you of my errors.
I'm wrong quite a bit...every week.
Can you not?
Great, let’s have the next loan crisis. . . .
Bank on it. Only question is, will it be before or after the election?
Forgiven loans go on a credit report, do they not?
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