Department Lays Out Options for Charlotte Students

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Photo: Joe Gratz / CC2.0
Media Outlet: Inside Higher Ed

Clare McCann was quoted in Inside Higher Ed on the Obama-era borrower-defense rule:

Clare McCann, a former Obama administration official and the deputy director for federal higher education policy at New America, said the Obama rule changed the standards for a borrower-defense claim and would have allowed Charlotte students to cite the department's findings from its December letter withdrawing access to federal aid programs. The Obama rule also would have provided a clear process for the department to consider claims like those of former Charlotte students with similar circumstances as a group instead of one by one. It's unclear if the department will consider group discharge for those students now -- Obama officials had insisted they did not have the authority to grant group discharges under the existing rule.


McCann said it was clear that Charlotte sought to remain open to protect its parent company's liability from loan-discharge claims. She said the department should have taken that into account in setting the window for students to qualify for closed-school discharges.

"I just think the window should be extended because they so clearly tried to game the system," she said.

In the News:

Clare McCann is the deputy director for federal higher education policy with New America's Education Policy program. She previously served as a senior adviser on higher education policy at the U.S. Department of Education.