The rules, known as borrower defense, were finalized in October by the Obama administration after years of negotiation and review, and they had been scheduled to take effect on July 1. But after President Trump took office, Ms. DeVos paused the planned changes, citing a federal lawsuit filed in May by an association of for-profit colleges in California that is seeking to block the rules.
Ms. DeVos also criticized the rules, calling them “a muddled process that’s unfair to students and schools,” and she said she would establish a new rule-making committee to reconsider the matter from scratch.
In their lawsuit, filed in Federal District Court in Washington, the states called the agency’s rationale for the delay — the California lawsuit — a “mere pretext” for repealing and replacing rules that had already been finalized. The states are seeking to have the rules restored.
“Since day one, Secretary DeVos has sided with for-profit school executives against students and families drowning in unaffordable student loans,” said Maura Healey, the Massachusetts attorney general, who led the multistate coalition. “Her decision to cancel vital protections for students and taxpayers is a betrayal of her office’s responsibility and a violation of federal law.”
