For-profit schools have been in the news a lot lately for a variety of reasons. Many of them have been shut down or been forced to shut down due to violations leaving their students with no recourse. An Obama-era policy called borrower defense was supposed to make it easier for defrauded students to get their student loans forgiven. Unfortunately, the new administration has been blocking students attempts to have their loans forgiven.

US Secretary of Education Betsy DeVos delayed borrower defense. The regulation was due to take effect in July of last year but DeVos blocked the regulation because in her view the rule was unfair to taxpayers.

A US District Court has found Betsy DeVos’s delay of borrower defense unlawful. Judge Randolph Moss denied a request to continue to postpone the regulation any further.

The Department of Education spokeswoman Liz Hill says that while the Department of Ed respects the ruling, they will continue to attempt to revise the rule:

The Secretary continues to believe the rule promulgated by the previous administration is bad policy, and the Department will continue the work of finalizing a rule that protects both borrowers and taxpayers. The Department will soon be providing further information regarding the next steps for implementation of the 2016 borrower defense regulation,” said Hill.

It’s worth noting that Betsy DeVos is attempting to scale back a number of other regulations on for-profit schools. Most recently her Department of Education sought to get rid of the “gainful employment” regulation which required for-profit schools to prove their graduates were able to find suitable jobs.


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