Arlington, VA – Today, the U.S. Department of Education (Department) released its final rule for borrower defense to repayment (BDR Rule), closed school loan discharges, pre-dispute arbitration and class action waiver agreements, and other issues previously included in the July 13, 2022, Notice of Proposed Rulemaking. As it currently stands, the final rule will take effect on July 1, 2023.
In response to the July 13, 2022, Notice of Proposed Rulemaking, more than 5,000 comments were submitted, many of which include substantive legal arguments about the deficiencies in the Department’s rule and the resulting threat of harm to schools and students. Indeed, CECU alone submitted a 137-page comment, which included a detailed legal analysis of the many ways in which the rule violates the law by, among other things, depriving schools of essential due process protections. Given the abbreviated 41-day window between the comment submission deadline and when the Department submitted the final rule for interagency review, the Department could not have meaningfully considered thousands of comment submissions.
“The Department has cut corners in a rush to ram through a punitive borrower defense rule with serious legal and regulatory flaws that could undermine the American education system,” said CECU’s President and CEO, Dr. Jason Altmire. “This is yet another example of the Department’s willingness to disregard established process to pursue a partisan borrower defense agenda that is contrary to the best interests of schools and students. CECU has long supported sensible borrower defense regulations that comply with the law and protect the interests of both students and schools. The new rule fails on both counts.”
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, Vice President of Communications, at Jenny.Faubert@career.org.