Statement on Borrower Defense to Repayment Ruling

​Following today’s ruling by U.S. District Judge Randolph Moss, Career Education Colleges and Universities president and CEO Steve Gunderson released the following statement:

“Today’s ruling is not surprising, but it is disappointing as it will only create further confusion for students and schools regarding many different issues.  The Judge correctly stated that “this is not the first (and presumably not the last) chapter in a dispute about the fate of regulations.”

​“Many will look at this ruling where a Judge appointed by President Obama upholds a rule created by the Obama Department of Education and see further evidence of the politicization of our court system.  In essence, the Judge has said that specific schools must articulate specific irreparable damages for him to provide an injunction against the rule going into effect.  For schools to disclose the severity of such legal matters on their financial condition and continued viability to meet the Judge’s standard, would in effect result in such schools having to close for either reputational reasons, creditor decisions, or both. 
 
“There are many examples of both the Obama Administration, and the Bush Administration before that, choosing not to implement or enforce rules of the previous administration because they do not agree with such rules.  The Trump Administration should have the same authority to do so.  But for now, my hope is the Trump Education Department will provide as much guidance as possible to schools on how to operate amidst the current regulatory confusion caused by the decision to implement the Obama era regulation while they are in the final steps of creating a new, and much more balanced regulation providing due process to both students and schools.”