Rep. Maxine Waters (CA-43) released the following statement after a federal judge ruled that an Obama-era set of consumer protections for defrauded students, known as the Borrower Defense Rule, will go into effect immediately, after repeated attempts by the Trump Administration and the for-profit college sector to delay the regulation:
“Students and student loan borrowers just won a monumental victory in federal court. For almost two years, Education Secretary Betsy DeVos and the Trump Administration have done everything they possibly could to block the 2016 Borrower Defense Rule—a set of regulations which allow students who have been defrauded by predatory schools to have their loans forgiven, and prevent schools from forcing students into binding arbitration.
“In defense of students nationwide, attorneys general from 19 states, including Attorney General Xavier Becerra from California, sued the Department of Education and Betsy DeVos. I am extremely pleased that their efforts prevailed, and that tens of thousands of students who were taken advantage of by for-profit colleges will once again be able to receive the student loan debt relief they so desperately need and deserve.
“The Borrower Defense ruling follows another recent court victory for students. In September 2018, Federal District Court Judge Randolph Moss ruled that Betsy DeVos’ attempts to get rid of the Borrower Defense Rule were without merit and illegal. Following this ruling, and fearing that the Borrower Defense Rule would go into effect, the for-profit college industry – in lock step with the Trump Administration — sued to prevent the regulation from becoming law.
“Students and advocates were forced to wait for debt relief as the implementation of the 2016 pro-student Borrower Defense Rule was once again put on hold. However, the wait is now over. Donald Trump and Betsy DeVos’ shameful efforts to enrich private companies at the expense of students — many of whom were veterans, people of color, and the most vulnerable in our society — failed. Students and the American people won. This victory is just one of many to come.
“This court ruling effectively made the Borrower Defense Rule the law of the land, and the Department of Education must begin implementing the rule without delay. Make no mistake, I will continue to hold Betsy DeVos and the Trump Administration accountable, and ensure that they do just that.”