19 States Sue to Keep Borrower Defense to Repayment Rules in Force

A number of States have filed suit against Betsy DeVos and the Department of Education in an attempt to move forward the guts of the Borrower Defense to Repayment rules that would have protected students from school fraud and poor performance.

Politico is reporting, “The rules, known as “borrower defense to repayment,” are aimed at making it easier for defrauded student loan borrowers to seek debt forgiveness. They also prohibit colleges from requiring students to resolve complaints against their school through arbitration rather than in court.

The Trump administration last month delayed implementation of the rules, citing a legal challenge by a California association representing for-profit colleges. DeVos said at the time the rule created “a muddled process that’s unfair to students and schools, and puts taxpayers on the hook for significant costs.” The Education Department has said it will begin a process to rewrite the rules later this year.”