Student loan rule from 2010 that Trump keeps kicking is back on

Without a single word from the president or congressional leaders, the student loan bill that emerged from Congress on Monday rolls back a rule from 2010 that made it easier for students to escape…

Student loan rule from 2010 that Trump keeps kicking is back on

Without a single word from the president or congressional leaders, the student loan bill that emerged from Congress on Monday rolls back a rule from 2010 that made it easier for students to escape debt.

“It doesn’t seem like the president is doing anything,” said Chris Henze, a student at the University of Nevada, Las Vegas. Mr. Henze is a Peace Corps volunteer in Mali.

For many student loan advocates, however, the student loan rule is significant. It was passed amid broad concern about skyrocketing student loan debt. And it helped create a win for students — helping them negotiate with loan servicers who fail to give them refunds.

“Consumers have come to expect the government to make sure the rules are fair and are enforced,” said Kimberly Schafer, the director of student and young adult policy at the Center for American Progress, a liberal advocacy group. The rule “protects many Americans who have been victimized by the student loan industry.”

President Obama first signed the rule in December 2010, after he attempted to enact it with an executive order. But GOP lawmakers killed it. In October 2011, lawmakers amended federal law to block Mr. Obama’s attempt to put his signature on the rule.

With Mr. Obama sitting in the Oval Office, both houses of Congress swiftly returned him an update that would allow students to terminate contracts with student loan servicers before they sued.

Sen. Elizabeth Warren (D-Mass.) introduced the proposal as part of the 2012 Consumer Financial Protection Bureau chartering bill. Rep. Maxine Waters (D-Calif.) offered a companion bill in the House.

After Republicans took control of the House in 2015, Mr. Warren withdrew the bill in favor of a new iteration that also repealed another Obama-era consumer protection.

Read the full story at The New York Times.

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