Statement About Report That Department Of Education Will Miss Key Deadline On Borrower Defense | Press Release

October 3, 2018

JAMAICA PLAIN – In a report by Bloomberg last night and a subsequent court filing, the Department of Education confirmed that it will miss a key November 1 deadline to publish final borrower defense and gainful employment regulations. The draft regulations that the Department published this summer proposed to gut both rules, making it impossible for borrowers to submit claims that they had been cheated by their schools, and to allow the Department to determine whether programs are burdening students with more debt than they can afford.

The following is a statement from Toby Merrill, director of the Project on Predatory Student Lending at the Legal Services of Harvard Law School, on the announcement that the Trump administration will miss this key deadline.

 

“The Department’s proposed rules are so fundamentally flawed that no amount of time could put the Department’s proposals on strong legal footing. The Department should just abandon its attempts to deprive students of their rights, and cancel the loans of defrauded student loan borrowers once and for all. In its latest brief, the Department admits that there is no legal barrier to some of the 2016 borrower defense rule’s key legal protections. That rule should be put into place immediately.”

 

Last month, a federal judge ruled that the Department had illegally acted to delay the 2016 borrower defense rule that that incorporated critical protections for students. The Project on Predatory Student Lending and Public Citizen are representing two former students of the New England Institute of Art in the case, Bauer vs. DeVos.

The judge gave the Department until October 12 to implement the rules or provide a permissible explanation of why they should not be implemented. He scheduled a hearing on October 9 on an industry group’s request to enjoin the 2016 rule.

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