Administration Delays the Borrower Defense Rule and Decides to Renegotiate Borrower Defense and Gainful Employment Rules

On June 14, 2017, the Education Department released two notices in the federal register. One notice delayed the bulk of the borrower defense rule, which was slated to go into effect on July 1, 2017. The other notice announced ED’s intent to establish two negotiated rulemaking committees, one on borrower defense and certain collection fees, and one on gainful employment. Nineteen states, Public Citizen, and the Project on Predatory Student Lending of the Legal Services Center of Harvard Law School have challenged the delay in court. For a roundup of many partners’ statements against these actions, click here.