Court Battles

Court rules Obama-era student loan regulations must take effect

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A D.C. District Court judge on Tuesday allowed the implementation of Obama-era student loan protections for for-profit college graduates, denying a request for further delay.

{mosads}This decision means that the law, which sets 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, is now in effect after it was proposed in 2016.

The borrower protection rule was challenged by the California Association of Private Postsecondary Schools (CAPPS) upon its announcement, but a decision was never made in that case because new Department of Education head Betsy DeVos delayed the rule herself.

Two cases, which were consolidated in Bauer v. DeVos, challenged that delay and successfully got the judge to deny the rollback request in September.

Despite DeVos accepting the court’s decision to stop the rule’s delay, CAPPS’s case was still being evaluated, and the group issued a preliminary injunction to delay the implementation while their case was being processed.

But Judge Randolph Moss ruled Tuesday against the preliminary injunction using precedent from Winter v. Natural Resources Defense Council, meaning the rule is now in effect.

In a statement released by Public Citizen, a nonprofit consumer advocacy organization, Julie Murray lauded the decision.

“Today’s decision is a huge win for defrauded borrowers around the country,” said Murray, an attorney representing the students suing.

“The rule is finally in effect. No more excuses. No more delays. Industry will continue to challenge the rule in court, but we will work as long as it takes to defeat those corporate interests and an administration beholden to them.”

CAPPS did not immediately respond to The Hill’s request for comment. 

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