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Senators press secretary on borrower‑defense capacity as for‑profit defaults highlighted
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Summary
Senator Durbin and others questioned Secretary McMahon about reductions to the borrower‑defense enforcement unit and protections for borrowers at for‑profit colleges; the hearing included statistics that 8 percent of students attend for‑profit institutions while for‑profit students account for a disproportionate share of defaults.
Senator Dick Durbin questioned Secretary McMahon about the department’s capacity to enforce borrower‑defense protections for students who say they were misled by colleges — particularly for‑profit institutions — and about staffing cuts to the office that handles those claims.
Durbin began with an exchange of statistics: he said 8 percent of high‑school graduates attend for‑profit colleges while students from for‑profit institutions account for roughly 30 percent of student‑loan defaults. Durbin described borrower defense as “the rescue for these students” and asked why the department was reducing staff in the office meant to investigate and enforce borrower‑defense claims. McMahon said the department planned other measures such as increased upfront information on FAFSA and guidance‑counselor outreach to help students choose programs and warned that deception was not limited to for‑profit schools.
Durbin pressed for why the department would “hollow out the borrower defense agency” when it is intended to protect students already harmed by deceptive institutions; he asked McMahon to identify what the department was putting in place in lieu of full enforcement capacity. McMahon cited proposals to improve upfront information for applicants and greater emphasis on counseling and guidance, and said she believed other measures would help prevent future harm. Durbin and other senators urged that enforcement resources be maintained for current borrowers seeking relief.
The hearing produced no vote; Durbin and other senators asked for follow‑up information about staffing, enforcement caseloads and how the department will support borrowers already harmed.
