Ranking Member Scott Statement on Court Ruling in Borrower Defense Lawsuit
WASHINGTON, DC – Ranking Member Bobby Scott (VA-03) issued the following statement after a federal court judge ruled the Department of Education illegally delayed the “Borrower Defense” (BD) rule. The rule was established under President Obama in the wake of two massive for-profit college closures to provide relief to defrauded students.
“Today’s court ruling is a major victory for students. In September, the Court found the Department illegally delayed the Borrower’s Defense regulations, delaying relief for students who were cheated out of their education, their money, and their future. Today, the Court ordered the Department to provide relief to more than 100,000 borrowers who have waited over a year to get the relief they deserve.
“I urge Secretary DeVos to faithfully implement the Borrower’s Defense regulations by discharging loans for students who have been defrauded by their schools, providing automatic relief for eligible students when their school suddenly closes without notice, and banning a provision that deny students their day in court.”