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AACS Opposes Passage of House Joint Resolution 76

AACS Opposes Passage of House Joint Resolution 76

AACS Opposes Passage of House Joint Resolution 76

Let’s Give the Current Regulation Time to Work Before We Deem It Ineffective

Scottsdale, AZ – Today, the American Association of Cosmetology Schools (AACS), representing over 600 schools nationwide, released the following statement from AACS Executive Director Kathy Chow, who urged all Members of the United States House of Representatives to oppose House Joint Resolution (HJ Res.) 76, which seeks to utilize the Congressional Review Act to block 2019 rulemaking by the U.S. Department of Education regarding Borrower’s Defense to Repayment.  “This week, the House will vote on a resolution blocking a properly negotiated agency Final Rule that contains clearer processes and procedures for borrowers and schools alike, as well as important taxpayer safeguards,” stated Chow.

AACS supports the new 2019 regulations, which are scheduled to go into effect on July 1, 2020, and notes that the new regulation maintains many components of the Obama-era Borrower Defense Rule.  In summary, inclusions of not requiring a student to be in default on their student loans before filing a claim, application of the preponderance of the evidence standard to all claims and maintaining a process to recover from schools the amount of borrower relief awarded.  The new rule also expands the window for borrower closed school discharge rights from 120 to 180 days before closure, which is an important step in student protection in the new rule that the House action would nullify.  The new rule also includes taxpayer protections such as requiring demonstration of harm to sustain a claim and allowing for partial relief in appropriate circumstances.  It also includes clearer deadlines for the Department to respond and for the student and the borrower to submit relevant information.  “Seeing that the newly negotiated rule just went into effect, we feel it would be wise to allow the appropriate length of time for this new Borrower’s Defense to Repayment system to work and give us a chance to see if it is effective; rather than do away with it by way of Congressional Resolution before it goes into effect”, added Chow.

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Another four states – Arizona, Delaware, New Hampshire and Rhode Island – will be adjourning their respective 2024 legislative sessions at the end of the month.

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