Scanlon Joins McBath in Leading Legislation to Provide Financial Relief for Students

Washington, D.C. — Today, Rep. Mary Gay Scanlon joined Rep. Lucy McBath in introducing H.R. 3662, the Relief for Defrauded Students Act of 2019, legislation that would make the borrower defense rule permanent and allow for student loan relief in cases of misconduct by institutions. Scanlon and McBath were joined by Representatives Abby Finkenauer, Katie Porter, Cindy Axne, and Sharice Davids joined McBath in introducing this bill. The National Education Association (NEA), American Veterans (AMVETS), and Veterans Education Success have all endorsed this legislation.

“It is our duty as legislators to protect the success of our students as they pursue higher education,” said McBath. “I have heard from too many young people in my district who were defrauded by schools like Argosy University. Our kids should be leaving school ready for success, not paying for the misconduct of predatory institutions. It is past time we held the Department of Education accountable in ensuring the wellbeing of our students.”

“We have an obligation to protect students from institutions who employ predatory practices,” said Scanlon. “A college degree should not be a debt sentence. These deceptive institutions drag students into debt while providing little to no educational value. This is an issue close to my heart, as Pennsylvania has the highest student debt average in the country. I am proud to co-lead this legislation to provide relief for defrauded students and am grateful to Rep. McBath for her leadership on this issue.”

“This is about standing up for hardworking Iowans who are trying to build a better life for themselves and their families,” said Finkenauer. “It’s absolutely unconscionable that predatory institutions would take advantage of these folks. Answering to their Wall Street investors, they promised students a pathway to good jobs and financial security but did everything they could to mislead them and leave them — and taxpayers — on the hook with tens of thousands of dollars of bad loans. That’s not how you treat people and it’s important that we enforce the protections that are on the books so that we can get people the relief they’re owed so they can begin to rebuild their lives.”