Supreme Court to Review Biden’s Borrower Defense Rule
Jessica Blake
January 13, 2025
The Supreme Court agreed Friday to review President Biden’s borrower-defense rule that aimed to make it easier for a defrauded student loan recipient to seek debt relief.
The rule, finalized in October 2022, has been on hold since summer 2023 after the U.S. Court of Appeals for the Fifth Circuit put the regulations on hold. That court later granted a preliminary injunction in April, ruling that Biden’s policy had “numerous statutory and regulatory shortcomings.”
Under the borrower defense to repayment program, borrowers can apply for debt relief if their college or university misled them or violated certain state laws. The new regulations simplified the application process for affected students and allowed the department to automatically discharge student loans in some cases.
