Statement About Court Decision on Illegal Borrower Defense Delays | Press Release

September 18, 2018

JAMAICA PLAIN – In another victory for student borrowers, a federal judge late Monday vacated the Department of Education’s delays of the 2016 borrower defense rule that included critical protections for student borrowers. The ruling follows last Wednesday’s decision that the Department’s delays were illegal, and Friday’s hearing on how the Department should proceed. The judge reiterated that the Department’s delay was unlawful and was harmful to students, and stayed the effect of the decision for 30 days, until October 12 at 5 p.m. There will be a hearing on October 9 on an industry group’s request to enjoin the 2016 rule.

The case, Bauer vs. DeVos, was brought by two former students of the New England Institute of Art, an EDMC-owned for-profit college. They are represented by the Project on Predatory Student Lending and Public Citizen.

 

The following is a statement on last night’s ruling from Toby Merrill, Director of the Project on Predatory Student Lending.

“We are gratified that, yet again, students have prevailed against unfair and corrupt policies. The ongoing delays around borrower defense are illegal and harmful to students. We are hopeful that, after this thirty-day stay, key provisions of this borrower defense rule will finally take effect.”

For information on the case, click here.

 

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.

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.

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