Breaking News: Federal Appeals Court Issues Nationwide Injunction Blocking Biden Administration Borrower Defense Rule
August 7, 2023
Moments ago, the U.S. Court of Appeals for the Fifth Circuit issued an order postponing the July 1, 2023, effective date of the Biden administration’s borrower defense to repayment and closed school loan discharge regulations. Unlike the previous stay, which applied only to educational institutions that are members of Career Colleges & Schools of Texas (CCST), today’s decision broadens the injunction to apply to all higher education institutions nationwide.
The regulations, which were published by the U.S. Department of Education last fall, were scheduled to take effect on July 1, 2023.
Today’s nationwide injunction will remain in effect while the Fifth Circuit considers whether the district court erred in its denial of CCST’s underlying preliminary injunction motion.
Given the Fifth Circuit court’s schedule, it is likely the newly-issued temporary injunction against the borrower defense and close school discharge regulations will stand for many months.
The sector is grateful to CCST for its leadership in filing this lawsuit. The facts of the case weigh heavily in favor of CCST’s compelling arguments, and today’s decision upholds this view.
