Student Loan Borrowers To See Better Protections Under New Rules

Student loan borrowers will be better protected against sudden school closures under the rules, the DOE says.

A college student studies in a university library.
(Image credit: Getty Images)

The Biden Administration issued final regulations aimed at bolstering oversight and accountability for higher education institutions and improving protections for student borrowers.

The new rules, which go into effect on July 1, 2024,  strengthen the Department of Education's (DOE) ability to protect students and taxpayers from sudden college closures, the Biden administration said in a statement. They include several requirements for colleges including the creation of warning signs that make it easier for DOE to secure letters of credit or other forms of upfront financial protections.

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Joey Solitro

Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.