Gardner Takes Stand for Defrauded Students

Statement

Date: March 11, 2020
Location: Washington, DC

U.S. Senator Cory Gardner (R-CO) released the following statement today after voting in favor of H.J.Res. 76, to overturn the August 2019 rule from the Department of Education relating to borrower defense to loan repayment.

"Today I'm proud to stand with students who were defrauded by educational institutions," said Senator Gardner. "There should be no excuse for defrauding students, particularly student veterans who have bravely served our country. Student veterans are an unfortunate target for unethical institutions and it is important that if such fraud or abuse occurs that there is a straightforward, efficient process in place at the Department of Education to adjudicate and forgive student loans. I voted in favor of the Congressional Review Act and against the 2019 rule due to concerns that the new procedures would make it too difficult for defrauded students to receive the relief they are due."

"Thousands of student veterans have been defrauded by bad-actor actor schools. Unfortunately, the Department of Education's new Borrower Defense Rule guts relief for these students in an effort to shield colleges. SVA will always stand with students, and that's why we support the congressional effort to overturn the Department's misguided rule," said Justin Hauschild, Legal Fellow at Student Veterans of America.

"We thank Senator Gardner for standing with servicemembers, veterans, and their families by voting in favor of H.J. Res. 76. Preserving a common-sense Borrower Defense Rule has been a long-standing priority of veterans' groups as we have seen firsthand the deceptive tactics used by predatory colleges to target veterans. We are grateful for the Senator for supporting the Congressional Review Act to overturn the unnecessarily harmful new Borrower Defense Rule that makes it almost impossible for defrauded borrowers to obtain relief," said Carrie Wofford, President of Veterans Education Success.

S.J. Res. 56 is supported by the American Legion, Student Veterans of America, ThirdWay, and others.

Background -- Senator Gardner's actions to assist student borrowers:

Senators Gardner and Bennet urged Secretary of Education Betsy Devos to extend the school discharge eligibility for Colorado students who were misled by the Art Institute of Colorado in December 2019.
In December 2019, Gardner and a bipartisan group of colleagues demanded an investigation from the Department of Education into the federal student loan discharge process for Americans with total and permanent disabilities.
In December 2019, the Senate passed Gardner's Faster Access to Federal Student Aid (FASFA) Act to simplify the Free Application for Federal Student Aid (FAFSA) filing process for nearly 20 million students and their families.
Gardner and a bipartisan group of colleagues wrote to Secretary of Education Betsy Devos in October 2019, urging the administration todischarge federal student loans for permanently disabled Americans.
In April 2019, Gardner reintroduced the Gateway to Careers Act to help expand economic opportunity for hard-working Americans and to support innovative businesses in need of a strong workforce.
Gardner introduced the Student Loan Repayment Acceleration Act in October 2018, which will allow employers to make tax-free contributions toward employees' student loans.
In June 2016, Gardner introduced the bipartisan Empowering Students Through Enhanced Financial Counseling Act to help students make smart decisions in the financing of their higher education.


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