Case Overview
On February 28, 2023, a complaint was filed in a Texas federal court challenging the U.S. Department of Education’s recently promulgated borrower defense to repayment rule (BDR Rule). CECU regional partner Career Colleges & Schools of Texas (CCST) initiated the lawsuit in an effort to set aside the unlawful BDR Rule on the grounds that it violates the U.S. Constitution and the Administrative Procedure Act, which sets out the process and procedures that federal agencies must follow in making and enforcing rules and regulations. CECU supports this effort and is proud of CCST’s leadership in bringing this critical legal challenge to fight for the future of career education students and schools, which are essential to meeting the needs of our country’s healthcare, infrastructure, and other skilled trade industries.
CECU has previously and repeatedly stated that a legal challenge, like the one now brought by CCST, could be necessary if the Department refused to withdraw and replace the deficient BDR Rule, which is currently set to take effect on July 1, 2023. Over the past several months, CECU has spearheaded a multi-pronged campaign to raise awareness about the devastating impact of the BDR Rule and advocate for its withdrawal. We have long supported carefully considered and thoughtful Department rules and policies that promote (as well as protect) the interests of both students and schools alike. This BDR Rule, however, fails in each respect.
CECU is confident that the Texas court will reach the correct legal determination and set aside the newly promulgated BDR Rule, which threatens to irreparably harm the American higher education system and deny generations of students access to career education. Students who are harmed by unlawful actions should be protected, but the Department must also be bound by the law, and act properly within its authority.
CECU has previously and repeatedly stated that a legal challenge, like the one now brought by CCST, could be necessary if the Department refused to withdraw and replace the deficient BDR Rule, which is currently set to take effect on July 1, 2023. Over the past several months, CECU has spearheaded a multi-pronged campaign to raise awareness about the devastating impact of the BDR Rule and advocate for its withdrawal. We have long supported carefully considered and thoughtful Department rules and policies that promote (as well as protect) the interests of both students and schools alike. This BDR Rule, however, fails in each respect.
CECU is confident that the Texas court will reach the correct legal determination and set aside the newly promulgated BDR Rule, which threatens to irreparably harm the American higher education system and deny generations of students access to career education. Students who are harmed by unlawful actions should be protected, but the Department must also be bound by the law, and act properly within its authority.
Select Case Files (Civil Docket #: 1:23-cv-00433)
May 26, 2023
May 22, 2023
May 18, 2023
May 17, 2023
May 15, 2023
April 25, 2023
April 17, 2023
April 14, 2023
April 10, 2023
April 7, 2023
April 5, 2023
March 17, 2023
February 28, 2023
May 22, 2023
- Plaintiff’s Opposition to Defendants’ Motion to Exclude Expert Declaration
- Plaintiff’s Reply Brief in Support of its Motion for Preliminary Injunction
May 18, 2023
May 17, 2023
- Plaintiff’s Opposition to Proposed Amici’s Motion for Leave to File Brief in Support of Defendants
- Motion of Public Citizen and Project on Predatory Student Lending for Leave to File Brief of Amici Curiae in Support of Defendants
May 15, 2023
- Defendants’ Motion to Exclude Expert Declaration
- Defendants’ Opposition to Plaintiff’s Motion for Preliminary Injunction
April 25, 2023
April 17, 2023
- Opinion and Order Granting Motion to Transfer
- Defendant’s Motion for an Extension of Time to Respond to Preliminary Injunction Motion
April 14, 2023
April 10, 2023
April 7, 2023
- Appendix In Support of Plaintiff’s Brief in Opposition to Defendant’s Motion to Dismiss or Transfer
- Plaintiff’s Brief in Opposition to Defendant’s Motion to Dismiss or Transfer
April 5, 2023
- Plaintiff’s Motion for Preliminary Injunction
- Plaintiff’s Brief in Support of its Motion for Preliminary Injunction
- Appendix in Support of Plaintiff’s Motion for Preliminary Injunction (Declarations)
March 17, 2023
- Defendant’s Motion to Dismiss or Transfer
- Defendant’s Brief in Support of Their Motion to Dismiss or Transfer
- Appendix to Defendants’ Motion to Dismiss or Transfer
February 28, 2023
News Coverage
A federal judge who first blocked broad student-loan forgiveness just gave Biden a win by agreeing to pass on a case challenging a debt relief rule April 18, 2023
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Texas lawsuit challenging Biden student loan rule transferred to more liberal court
April 18, 2023 |
Biden DOJ wins transfer of lawsuit challenging student loan rule away from conservative Texas court
April 17, 2023 |
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Texas trade association suing to stop new borrower defense rule because it ‘all but ensures’ claims will be approved
February 28, 2023 |
For-profit colleges sue to stop Cardona’s easier path for debt relief for defrauded students
February 28, 2023 |