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Court Vacates Delays of Department of Education’s Borrower Defense Rule

September 17, 2018

A United States District Judge recently ruled that the Department of Education’s repeated delays of the Borrower Defense Rule were illegal. We submitted an amicus brief in this case. This 2016 regulation was designed to help students who have been defrauded by for-profit educational institutions discharge their federal student loans. Under Secretary Betsy DeVos, the Department of Education delayed implementation of the Borrower Defense Rule three times, prompting a legal challenge. In May 2018, we submitted an amicus brief arguing that the delays were arbitrary and capricious because the Department failed to provide a reasoned explanation for any of them. The D.C. District Court agreed that all three delays were unlawful and must be vacated.

Filed under Court Filings, Safety and Consumer Protection