Congress to Take Up Bill That Loosens Fraud, Waste, & Abuse Restrictions on Colleges
As many of you may already know, members of Congress are currently enjoying a summer recess. In case you've been longing for the daily accusations of partisan rhetoric flowing freely from both sides, never fear for they return to work September 9, 2013! One proposed bill awaiting discussion in the House of Representatives is particularly offensive to borrowers and their families and should certainly not pass unnoticed. The bill, H.R. 2637, introduced by U.S. Rep. Virginia Foxx (R-NC) and entitled "Supporting Academic Freedom Through Regulatory Relief" does nothing of the kind. Instead, the bill would weaken federal regulations — which Congress passed more than 20 years ago with strong bipartisan support — on any college paying bonuses to recruiters based on boosting student enrollment or financial aid.
The effects of H.R. 2637's passage would be the repeal of rules protecting students, including veterans, from waste, fraud, and abuse, and would tie the Education Secretary’s hands while leaving taxpayers holding the bag. Some for-profit colleges receive close to 90% or more of their funds from federal taxpayers and at the same time are being investigated by more than 32 state attorneys general, the Securities and Exchange Commission, and the Consumer Financial Protection Bureau. This is certainly not the time for Congress to muzzle regulators from doing their jobs to protect the public.
Read the legislation and decide for yourself, then let your lawmakers know your opinion.
