Education Secretary Betsy DeVos suspends new rules cracking down on abuses by for-profit colleges

As Corinthian Colleges Inc., ITT Technical Institute and other for-profit schools collapsed in recent years, the Obama administration overhauled regulations to make it easier to forgive loans for stranded students and to try to prevent future abuses.

Now, the Trump administration is suspending those rules, which had been set to go into effect July 1. The Department of Education, under Secretary Betsy DeVos, also is launching an effort to rewrite the rules.

Both moves drew criticism from Democrats and student advocates.

For Claudia Chacon, 25, of Los Angeles, a former student at Corinthian’s Everest College, the decision could lead to more difficulties in her attempt to get loan relief.

Santa Monica College, she was told that her Everest transcripts were invalid because the campus had closed.

DeVos said Wednessday that it was “time for a regulatory reset” on what she called “a muddled process that’s unfair to students and schools and puts taxpayers on the hook for significant costs.”

“Fraud, especially fraud committed by a school, is simply unacceptable,” she said. “Unfortunately, last year’s rulemaking effort missed an opportunity to get it right.”