A federal court late on Friday partially blocked the Department of Education’s (ED) final rules on borrower defense to repayment from taking effect.
The final rules were slated to go into effect on July 1, but a three judge panel sided with a Texas for-profit association, Career Colleges and Schools of Texas, and temporarily prevented the final rules from taking effect for members of the institutions involved in the lawsuit.
The panel declined to issue a broader nationwide injunction that would have blocked the final regulations for all institutions.
The borrower defense regulations have been contentious, with ED seeking to create an easier path for borrowers defrauded by their institutions to receive student debt relief. The final regulations were originally issued in November of 2022.
NASFAA has also detailed a full summary of those regulations.
Publication Date: 7/5/2023