Judge rules against DeVos rollback of Obama-era student loan regulations

Judge rules against DeVos rollback of Obama-era student loan regulations
© Greg Nash

A federal judge on Wednesday ruled against the Trump Education Department regarding its rollback of Obama-era student loan regulations, Bloomberg reported.

U.S. District Court Judge Randolph Moss sided with 19 Democratic state attorney generals and the District of Columbia, who argued in a lawsuit against Secretary of Education Betsy DeVosElizabeth (Betsy) Dee DeVosThe 7 most interesting nuggets from the Mueller report Blackwater founder Erik Prince helped fund effort tied to obtaining Clinton's emails GOP lawmaker calls for investigation into alleged 'anti-Israeli bias' at Duke-UNC conference MORE that the Department of Education violated federal law by rolling back its Borrower Defense to Repayment rule. The judge ruled the department violated procedure in its decision.

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The program was meant to protect students from predatory student loan practices.

Meanwhile, for-profit institutions have argued that the program was unfair. The program set up automatic triggers requiring a school to put up a large sum of money each time a lawsuit is filed against it to protect taxpayers, should the institution fail.

DeVos had sought to delay the regulations until July 1, 2019 to give the Education Department more time to rewrite them. DeVos said last year that it was “time for a regulatory reset.”

The court ruled that DeVos's actions were "unlawful" and "arbitrary and capricious." Moss wrote in the 57-page ruling that the delay was "otherwise invalid without negotiated rulemaking, notice, and an opportunity for public comment."

Moss also wrote that he will determine how to proceed with the case following a hearing on Friday at 10:30 a.m.

California Attorney General Xavier BecerraXavier BecerraTrump is right: Healthcare should be handled by the states California attorney general calls for unauthorized immigration to be decriminalized Pelosi announces lawsuit to block Trump's emergency declaration MORE in a statement called the ruling a win for students "who were cheated of a quality education."

"As we've said all along, anyone who seeks higher education should be able to do so without worrying that their American Dream will be stolen by unscrupulous purveyors of a sham education," Becerra said.

-- Updated 9:30 p.m.