Department Lays Out Options for Charlotte Students

In The News Piece in Inside Higher Ed
Joe Gratz / CC2.0
Aug. 25, 2017

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.