Federal court rules Trump administration illegally delayed borrower defense rule

U.S. District Judge Randolph D. Moss ruled that the Education Department under the Trump administration broke the law by repeatedly delaying the Obama-era borrower defense rule. The rule was finalized in November 2016 and was slated to take effect July 1, 2017, but the administration announced delays in June 2017, October 2017, and February 2018. In Bauer v. DeVos, Public Citizen and the Project on Predatory Student Lending argued on behalf of two former New England Institute of Art students that the delays violated the Administrative Procedure Act and the Higher Education Act. The court agreed, finding procedural failures and insufficient rationale. The rule was designed to protect students defrauded by predatory for-profit colleges and barred forced arbitration clauses. A remedy hearing was scheduled for September 14.

“The Department's failure to provide a reasoned explanation for its delay renders the action arbitrary and capricious.” — U.S. District Judge Randolph D. Moss in Bauer v. DeVos