If Pennsylvania residents think taxes are high now, wait until they catch wind of the bill they’ll be footing under a new Obama administration regulation that could allow thousands of students to default on their loans.
The “borrower defense to repayment” regulation, created during the Clinton administration, was originally established to protect students from being exploited by universities.
If a university were to break state laws, students could petition to challenge their loan repayments.
However, new amendments to these regulations, which are currently in review before final publication, creates murky waters for students to evade repaying their loans, forcing taxpayers to pick up the tab.
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