Statement Following Court Hearing On Borrower Defense Delays | Press Release

September 14, 2018

JAMAICA PLAIN – In a major victory for student borrowers this week, a federal judge ruled on Wednesday that the Department of Education acted illegally in delaying the 2016 borrower defense rule that incorporated critical protections for student borrowers. A hearing was held today to consider next steps. The judge has taken the issue under advisement with a decision expected in the coming weeks.

The case, Bauer vs. DeVos, was brought on behalf of two former students of a for-profit college represented by the Project on Predatory Student Lending along with Public Citizen.

 

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

“The 2016 borrower defense rule imposed critical protections for students. This week’s court ruling clearly stated that the Department’s repeated delays of those protections were illegal. We were encouraged that the judge acknowledged the harm that these significant delays have caused student borrowers, and outraged that the Department continues to ignore this harm. The willingness of two students to stand up to the Department of Education’s unfair and unlawful actions will affect the rights of hundreds of thousands of students across the country.”

 

For information on the case brought by the Project and Public Citizen, 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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