Releases and Statements

Federal Judge Tentatively Rules Schools Can Intervene in Sweet v. Cardona

8/4/2022

Arlington, VA – Today, a federal district court in California held a hearing in Sweet v. Cardona, a long-running suit brought by student loan borrowers against the U.S. Department of Education, to address motions to intervene filed by both for-profit and nonprofit higher education institutions. The schools sought to intervene after the parties announced a proposed settlement that would automatically forgive the loans of students who attended over 150 schools without adjudicating their borrower defense applications under the Department’s own regulations.

"We are pleased that, today, Judge Alsup tentatively ruled that he will allow schools to intervene in Sweet v. Cardona to protect their interests. The parties’ proposed settlement has unfairly impugned the reputations of more than 150 schools, all without the basic procedural fairness to which these schools are entitled under the Department’s own regulations," said CECU’s President and CEO, Dr. Jason Altmire. "We are confident that these schools’ participation in the case will ensure a more just outcome for everyone involved."

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About Career Education Colleges and Universities
Career Education Colleges and Universities (CECU) is the national association serving the proprietary higher education sector.

Please direct media inquiries to Jenny Faubert, VP of Communications, at Jenny.Faubert@career.org.

CECU Request Records from Biden Administration onBorrower Defense

8/1/2022

Arlington, VA – CECU has submitted a Freedom of Information Act (FOIA) request to the U.S. Department of Education seeking records pertaining to the Department’s decisions in its most recent rulemaking on borrower defense to repayment (BDR), as well as records related to the pending litigation in Sweet v. Cardona. A copy of CECU’s FOIA request is available here.

“Our request will increase transparency and assist CECU members and the general public in submitting informed comments related to borrower defense to repayment,” said CECU’s President and CEO, Dr. Jason Altmire. “Additionally, our FOIA request will ensure the interests of both schools and students are adequately represented in the negotiations of any proposed settlement in Sweet v. Cardona.”

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Biden Administration Releases Proposed 90/10 Rule Impacting Proprietary Schools

7/26/2022

Arlington, VA – Today, the U.S. Department of Education published the unofficial version of its Notice of Proposed Rulemaking (NPRM) on 90/10, change in ownership, and Pell Grants for Prison Education Programs.

“The 90/10 rule set by Congress is a misguided policy. Although we fundamentally disagree with this flawed accountability metric, we commend the Department for adopting the consensus-based language agreed upon during the negotiated rulemaking process," said CECU’s President and CEO, Dr. Jason Altmire. "We look forward to working with the Department to implement the rule so that it is fair for both students and institutions.”

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Career Education Schools Move to Intervene in Sweet v. Cardona

7/14/2022

Arlington, VA – Today, career education schools have moved to intervene in Sweet v. Cardona to ensure that their interests and rights, as well as the interests and rights of institutions, students, and taxpayers across the country, are represented and protected.

“The U.S. Department of Education’s proposed settlement would grant debt cancellation relief to hundreds of thousands of borrowers without providing a meaningful process for assessing those borrower defense claims, and without giving all stakeholders a seat at the table to ensure that the outcome is fair and just for students, institutions, and taxpayers,” said CECU’s President and CEO, Dr. Jason Altmire. “In those instances when students allege that they have been defrauded, there should be a careful and thoughtful process in place that addresses those allegations and seeks to fairly resolve any claims. A fair and transparent claims resolution process that involves all stakeholders will establish a helpful precedent for managing future borrower defense claims.”

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Biden Administration Proposes Significant and Concerning Overhaul to Borrower Defense Regulations

7/6/2022

Arlington, VA – Today, the U.S. Department of Education published the unofficial version of its Notice of Proposed Rulemaking (NPRM) on borrower defense to repayment (BDR), along with six other issues negotiated last year. The public will have 30 days to submit written comments once the Department publishes the official NPRM in the Federal Register.

“We are disappointed that the Biden administration continues to pursue a borrower defense agenda that is not grounded in any existing statute, and that suffers from inadequate due process protections. For students who allege that they have been defrauded, there should be a careful and deliberative process for considering and resolving their claims. Any process the Department implements must be fair to students, institutions, and taxpayers alike,” said CECU’s President and CEO, Dr. Jason Altmire. “However, today’s proposed rule sends a clear and troubling message that the Department intends to use the rulemaking process to discharge federal student loans en masse while hurting unfavored institutions and their students in the process. This is an unprecedented expansion of the Department’s authority that was never contemplated by Congress and that will have substantial negative economic consequences on institutions and taxpayers.”

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Borrower Defense Proposed Class-Action Settlement Agreement

6/22/2022

Arlington, VA – Today in a federal court filing, the U.S. Department of Education agreed to settle a class-action case regarding the Department’s ongoing delay in processing borrower defense to repayment claims. The court will need to approve the proposed settlement agreement before it becomes final.

The agreement provides automatic relief, including federal loan discharges, refunds of amounts paid to the Department, and credit repair, for approximately 200,000 students who borrowed to attend one (or more) of a specified list of schools, many of which have closed in recent years. The Department alleges that “attendance at one of these schools justifies presumptive relief, for purposes of this settlement, based on strong indicia regarding substantial misconduct by listed schools, whether credibly alleged or in some instances proven, and the high rate of class members with applications related to the listed schools...” (Emphais added).

“We are deeply concerned that in its haste to respond to outside political pressure, the U.S. Department of Education is attempting to approve wide swaths of claims without regard to individual merit,” said CECU’s President and CEO, Dr. Jason Altmire. “The Department has an obligation to take a more measured approach to determine if each student has been financially harmed based on an unlawful act. The Court should look carefully at the settlement agreement to ensure it is fair for all parties involved.”

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CECU’s Statement on the Delay of the Gainful Employment Notice of Proposed Rulemaking

6/21/2022

Arlington, VA – According to the Biden administration's Unified Agenda of Regulatory and Deregulatory Actions report released today, the gainful employment Notice of Proposed Rulemaking (NPRM) will be delayed until April of 2023, missing the November 1, 2022, master calendar deadline for publication of the final rule. The earliest the rule could go into effect would be July 1, 2024.

“CECU is pleased that the Department of Education is taking the time necessary to reconsider their ill-conceived plans to propose an accountability measure that exempts the vast majority of institutions of higher education,” said CECU’s President and CEO, Dr. Jason Altmire. “We look forward to working with the Department in the months ahead to craft a meaningful and fair rule that applies to all institutions in all sectors, as the Department is authorized to do under Section 454 of the Higher Education Act.”

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