Department Of Education Releases New Student Loan Forgiveness Rule

The video discusses a new rule on loan forgiveness for students defrauded by colleges. The rule aims to treat students and taxpayers fairly but faces criticism for making debt cancellation harder. It revises Obama-era policies, which DeVos claims were ineffective. The rule is expected to save $11.1 billion over ten years. Critics argue it allows schools to exploit federal aid while the rule applies to loans from July 1, 2020, onwards.

What is the main criticism of the new loan forgiveness rule?

• It makes debt cancellation harder for defrauded students.

• It increases government spending.

• It only benefits private colleges.

• It is too lenient on students.

What was DeVos's main argument for rewriting the Obama-era policies?

• The old policies favored private colleges.

• The old policies were not effective.

• The old policies were too strict.

• The old policies were too costly.

How much money is the new rule expected to save over ten years?

• $20 billion

• $11.1 billion

• $5 billion

• $15 billion

According to DeVos, what does the new rule aim to achieve?

• Reduce college tuition fees

• Increase student enrollment

• Correct past policy mistakes

• Expand federal student aid

When does the new rule apply to federal student loans?

• Loans made on or after July 1, 2020

• Loans made after 2025

• Loans made in 2019

• Loans made before July 1, 2020