Federal judge orders enforcement of student loan fraud protection rule News
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Federal judge orders enforcement of student loan fraud protection rule

A federal judge on Tuesday ordered US Department of Education Secretary Betsy DeVos to begin enforcement of a student loan forgiveness fraud protection rule for for-profit college graduates.

By statute, a 2016 rule update to the 1994 Borrower Defense Rule, prohibits students who are harmed by a school that processes federal aid’s violation of certain laws, including prohibitions on fraud, may be entitled to relief from their federal Direct Loan obligations through a process known as “borrower defense” to repayment.

The Obama-era rule was challenged by the California Association of Private Postsecondary Schools shortly after its announcement, but a decision was never made when DeVos took office shortly after the 2016 election and delayed the rule herself.

CAPPS sought to delay the implementation of the rule, which district judge Randolph Moss denied.