Wisconsin DOJ joins coalition to protect student loan borrowers

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Published: Aug. 16, 2022 at 9:14 PM CDT
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MADISON, Wis. (WMTV) - The Wisconsin Department of Justice (DOJ) is recognizing the U.S. Department of Education (DOE) for its continued efforts to solve the student loan crisis and pushing for further changes to help students and taxpayers, it explained Tuesday afternoon.

In the Tuesday statement, the DOJ commended the DOE for its promotion of regulations to provide better relief to borrowers and its policy reform from programs allegedly used to benefit predatory schools.

“These proposed regulations would provide critical student loan debt relief to many borrowers,” said Attorney General Josh Kaul. “While more can and should be done to address the student loan debt crisis, these regulations represent substantial progress.”

The DOJ joined a 20-state coalition to promote more equitable and transparent relief for student borrowers.

One change the coalition was in favor of was the adjustment to borrower defense: a rule that was supposed to keep higher education institutions in check by holding them accountable from cheating students and taxpayers and providing loan relief for misled students.

According to the DOJ, students and taxpayers were disadvantaged in the previous administration when they gutted the rule and enabled school misconduct.

The coalition also urged the department to solidify debt relief for students with meritorious claims and increase the scope of Public Service Loan Forgiveness (PSLF). The DOJ would also like PSLF to be automated to reduce servicers trying to cheat borrowers.

Additionally, the coalition wants the DOE to strengthen Close School Discharge regulations to make sure students have adequate loan relief at schools that close before they can complete their degree.

“Under ED’s proposed regulations, borrowers who have been victimized by their schools will be able to obtain critical relief, predatory schools will bear the consequences of their misconduct, and public servants will finally have a clearer path to loan forgiveness,” the coalition letter states.

“We appreciate the care with which ED has undertaken this essential rulemaking process and look forward to working as partners to support and protect borrowers.”

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