Supreme Court to examine Biden administration’s borrower defense rule
Natalie Schwartz
January 14, 2025
The U.S. Department of Education challenged a court ruling that temporarily blocked regulations for granting debt relief to certain students.
Dive Brief:
The U.S. Supreme Court agreed Friday to review an appellate court decision that blocked the Biden administration’s rules for granting debt relief to students whose colleges misled them or closed before they could finish their education.
In April, the 5th U.S. Circuit Court of Appeals issued a preliminary injunction that halted the changes to the borrower defense to repayment regulations, as well as those governing closed school discharges. The ruling came in response to a lawsuit brought by Career Colleges & Schools of Texas, which represents private career institutions in the state.
The Supreme Court did not set a date to hear oral arguments but if it’s this term, a decision would be delivered by the summer. Regardless of the timing, the ruling will come well after President Joe Biden leaves office next week.
Dive Insight:
The U.S. Department of Education released rules governing the two debt relief programs in October 2022. The agency said the changes would make it easier for students to be eligible for and receive loan forgiveness if they were defrauded or their colleges closed.
