Washington, D.C.—The National Association of College and University Business Officers Monday submitted a comment letter to the Department of Education on its draft regulations on borrower defense to repayment of federal student loans. The department's proposal includes troubling new rules on institutional accountability and financial responsibility.
"The federal government's rulemaking effort on borrower defense to repayment is vitally important, but we have grave concerns about the Department of Education's expansion of institutional financial responsibility indicators within the proposed rule," said John D. Walda, president and CEO of NACUBO. "As the association dedicated to sound fiscal and administrative practices in higher education, NACUBO is concerned with the department's interpretation of what truly constitutes a risky financial situation for an institution.
"We are eager to see the Department of Education produce final rules that are sensible and truly shield students and taxpayers from fraudulent schools."
"NACUBO is particularly concerned about the consequences for private nonprofit colleges and universities," the association states in the comment letter. "The regulatory changes put forth by ED include inappropriate indicators—and generate consequences for institutions and students—that will not reliably address the deceptive, fraudulent practices that motivated this rulemaking effort."
Six higher education associations signed on in support of NACUBO's comment letter: The Association of Jesuit Colleges and Universities (AJCU), the Coalition of Higher Education Assistance Organizations (COHEAO), the Council of Independent Colleges (CIC), the National Association of Independent Colleges and Universities (NAICU), the National Association of Student Financial Aid Administrators (NASFAA), and UNCF.