June 03, 2025

In Appropriations Hearing, Durbin Calls Out Secretary McMahon For Eliminating Support For Students Defrauded By For-Profit Colleges

As Secretary McMahon attempted to deflect Durbin’s questions, Durbin asserted that the Trump Administration is eliminating critical student protections

WASHINGTON – U.S. Senate Democratic Whip Dick Durbin (D-IL), a member of the Senate Appropriations Committee, today participated in a Labor, Health and Human Services, Education, and Related Agencies Appropriations Subcommittee hearing to review the President’s Fiscal Year 2026 Budget Request for the Department of Education (ED).  During the hearing, Durbin questioned Secretary of Education Linda McMahon about how ED is supporting students defrauded by for-profit colleges.

Durbin began by underscoring the harm done by for-profit colleges, reminding Secretary McMahon that while for-profit colleges enroll only eight percent of American college students, those students account for 30 percent of all student loan defaults. 

“The problem is the difficulty students face [after attending a for-profit college] becomes a lifetime problem.  Imagine a first-generation college student trying to pick a place to go to school, inundated in high school with glossy brochures from for-profit colleges and universities, which promise the sun, the moon, and the stars,” Durbin said.  “The student goes and learns there are Pell grants available through for-profit colleges and universities.  They hear the promises that if they just attend this school and graduate, there’s going to be a good paying job at the end of the rainbow, and it turns out, it’s all phony.”

“They are being deluded and deceived. There is much more scam than there is scholarship… So most of them, or at least 30 percent of them, end up with loans they can’t pay back.  They never see that job that was promised to them.  But they’ve got one last place [ED] to turn to and try to get their lives back on track,” Durbin said.  “I have heard their stories from them.”

Durbin then asked Secretary McMahon about ED’s efforts to support students defrauded by for-profit colleges by allowing students to file borrower defense claims.

“You have a department within the Department of Education for borrower defense.  Are you familiar with that?... Can you tell me what you understand the borrower defense law to promise?”Durbin asked Secretary McMahon.

Rather than answer Durbin’s question, Secretary McMahon deflected by arguing that many non-profit universities and colleges also promise to help students secure a job after graduation.  Secretary McMahon did acknowledge that college affordability is a major obstacle for students, forcing them to take on significant student debt despite President Trump’s budget request asking to slash Pell grants by nearly $1,700 and gutting programs like TRIO and Gear Up that help first-generation and low-income college students enroll and complete their college degree.

However, as Durbin said in pushing back against Secretary McMahon’s indirect answer, for-profit colleges rarely deliver respected or marketable degrees to students, giving them little chance to secure a job as they attempt to pay off their mountain of student debt.

“The point that I’m making is there is one brand of college and university that is particularly egregious when it comes to deceiving these students.  It’s for-profit colleges and universities.  Eight percent of [American college students], 30 percent of student loan defaults… It stands out from all the rest,” Durbin said.

“The point I’m getting to is you’re hollowing out the borrower defense agency within your own department.  This is supposed to be the rescue for these students to finally get back on track and maybe go to a good school.  Why would you hollow out the resources there and the people that are enforcing the borrower defense rule when we have these terrible numbers of exploitation of students?” Durbin asked Secretary McMahon.

Secretary McMahon replied, “we shouldn’t just focus on those [for-profit] schools.  I totally agree with you, there are some scam universities out there.”

“Why would you hollow out the people who are supposed to enforce it?” Durbin countered.  “Give me an idea of what you’re putting in place that’s better than the borrower defense rule.”

As Secretary McMahon ineffectively argued that the Free Application for Federal Student Aid (FAFSA) would help students understand the threat of for-profit colleges, Durbin pushed for answers about how ED is supporting students who have already become victims of for-profit colleges.

“I’m talking about the victims.  The ones who are already victims.  They’re in debt by tens of thousands of dollars,” Durbin said.  “They have no place to turn, and you’re telling me the FAFSA form is going to help them?  How can it help them?”

Secretary McMahon replied, “that’s not in place yet, but I think that’s going to be very, very helpful.  Here’s the other thing.  Where are guidance counselors in high schools?”

“Good question!” Durbin replied.  “You’re cutting the number of counselors in these schools at the same time.”

“The counselors that are doing their jobs can provide information to these students,” Secretary McMahon said.

“There aren’t enough of them.  That’s the point I’m making.  The situation is terrible for these students.  First generation students are being exploited by these schools.  They need your protection.  They need our protection.  They deserve it,” Durbin said.  “Unfortunately, you’re reducing the number of people to enforce the law.”

The Trump Administration has made moves to dismantle ED, firing more than 1,300 staff and signing an Executive Order to demolish ED.  Last month, House Republicans included a provision in the reconciliation bill to roll back the Biden-era borrower defense rule that allowed for full debt relief, addressing a wider range of school misconduct, and allowing group claims rather than individual applications.  If passed by the Senate, the reconciliation bill will replace the Biden-era borrower defense rule with the rule instituted under the first Trump Administration, requiring borrowers to meet a higher bar to receive relief by showing they suffered financial harm from their college’s misconduct and that the college knowingly made deceptive or false statements.

For 11 years, Durbin has written to high school guidance counselors, teachers, and principals, urging them to warn students of the risks associated with attending for-profit colleges.

Video of Durbin’s questions in Committee is available here.

Audio of Durbin’s questions in Committee is available here.

Footage of Durbin’s question in Committee is available here for TV stations.

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