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Judge: Delay of Borrower Defense Rule Unlawful

September 13, 2018
 
 

A federal judge ruled Wednesday that Education Secretary Betsy DeVos' decision to delay an Obama administration student loan rule was illegal.

After DeVos delayed the rule, known as borrower defense, consumer groups and student advocates sued the department. The regulations spelled out how borrowers defrauded or misled by their institution could seek loan forgiveness.

DeVos in July released a rewrite of the borrower defense rule that included tougher standards for borrowers seeking loan discharge. 

U.S. District Court Judge Randolph Moss did not direct the department to take any action on the regulation but said he would rule Friday on possible remedies 

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