Federal judge rules delay on student loan rule illegal
Federal judge rules delay on student loan rule illegal

A judge for the US District Court for the District of Columbia ruled [opinion, PDF] Wednesday that the Department of Education unlawfully delayed the implementation of William D. Ford Federal Direct Loan Program.

The loan program [text] (otherwise referred to as “Borrower Defense Regulations”) was created in November 2016. The purpose was to help protect students from predatory lending practices. The California Association of Private Postsecondary Schools managed to delay the implementation of the Borrower Defense Regulations until July 2019. Subsequently, three students, along with a coalition of 19 states and the District of Columbia brought suit against the Department of Education.

The judge determined that the Department of Education allowed the delay in implementation of the Borrower Defense Regulations based on an “unlawful construction of the Higher Education Act of 196.” The judge found that the actions of the Department were arbitrary and capricious.