Title

DeVos Won't Seek Another Delay of Obama Borrower Defense Rule

October 13, 2018
 
 

The Education Department said Friday it won't seek another delay of the 2016 Obama borrower defense rule, which spells out loan forgiveness options for defrauded student borrowers and bars colleges from enforcing arbitration agreements.

A federal district court judge ruled in September that the department's delay of that rule -- issued before Education Secretary Betsy DeVos crafted another, more restrictive regulation -- was unlawful. It's now up to the court to determine what parts of the 2016 rule, such as the ban on arbitration agreements, will go into effect. 

"The Secretary respects the role of the court and will defer to its judgment in whether parts of the 2016 rule will go into effect," said Liz Hill, a department spokeswoman, in a statement. "Regardless of what the court decides, many provisions of the 2016 regulations are bad policy and the Department will continue the work of finalizing a new rule that protects both borrowers and taxpayers." 

The department said this month it would miss a Nov. 1 deadline for issuing a new borrower defense rule by next year. That means the earliest a DeVos authored regulation could go into effect is 2020. 

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