Statement on Education Department Rescinding Partial Relief Policy | Press Release

March 18, 2021

BOSTON – Today, the Department of Education rescinded its second partial relief policy. Its first was enjoined by a federal court in Calvillo Manriquez v. DeVos. This second policy has been challenged in Pratt v. DeVos. This policy was layered on top of the harmful 2019 borrower defense rules, and its repeal does not affect those rules.

 

Statement from Toby Merrill, Director of the Project on Predatory Student Lending

“The courage of our clients to go to court to stand up for themselves and others is to thank for this outcome. Our clients have consistently sounded the alarm about the unlawful and harmful anti-borrower policies of the Department, and they managed to stop the worst of these policies from taking effect. Abandoning partial relief is a strong start for a narrow subset of borrowers, but what we need from the Education Department is an overhaul of the current borrower defense process. Borrower defense is a fail-safe to protect defrauded students who were deceived by their schools, and ultimately to prevent bad actors from taking advantage of the federal student aid system. The previous administration turned borrower defense into a total sham that was rigged to deny claims without any true consideration. The Biden-Harris administration must now address these failings or else perpetuate a system that is stacked against the very students they are supposed to protect.”

 

The Project on Predatory Student Lending has represented more than one million former for-profit college students and won landmark cases against the Department of Education and predatory colleges.

 

About the Project on Predatory Student Lending

Established in 2012, the Project on Predatory Student Lending represents former students of predatory for-profit colleges. Its mission is to litigate to make it legally and financially impossible for federally-funded predatory schools to cheat students and taxpayers. The Project has brought a wide variety of cases on behalf of former students of for-profit colleges. It has sued the federal Department of Education for its failures to meet its legal obligation to police this industry and stop the perpetration and collection of fraudulent student loan debt.