DeVos issued new borrower defense rules today. Our allies are going to fight with us to challenge these rules.
"BOSTON, MA – The Project on Predatory Student Lending vowed to challenge new borrower defense regulations filed today by U.S. Education Secretary Betsy DeVos that gut fair, basic, and needed protections for hundreds of thousands of student borrowers across the country, including many who were defrauded by for-profit colleges.
The new rule reverses basic borrower defense protections that were finally put into place when the 2016 borrower defense rule was implemented in October 2018, including the elimination of forced arbitration clauses in student contracts at for-profit colleges, providing for a group borrower defense process, and ensuring automatic loan discharges for students at schools that abruptly closed. The new rule imposes impossible burdens on defrauded borrowers, including a three-year statute of limitations, documentation of a litany of evidence, including proof of financial harm beyond that of the federal loan itself.
The Project announced that it now will be forced to sue to block this new rule from going into effect. It will be drafting the legal challenge in the coming days and further details will be provided at the time of the legal filing."