A federal appeals court blocked Biden’s rules that would have made it easier for student borrowers to have their debt relieved.
The debt would have been considered for relief if the student was misled by a university.
The policy also made it easier for student borrowers to have relief if the institution closed suddenly.
The decision was made by granting an injunction request by Career Colleges & Schools of Texas, an organization that leads over 70 for-profit colleges and universities.
“It is ordered that appellant’s opposed emergency motion for injunction pending appeal of the borrower-defense and closed-school provisions of a ‘rule’ governing student loan discharges is GRANTED,” the decision reads.
The document adds, “It is further ORDERED that the case shall be heard by this panel during the sitting commencing November 6, 2023.”
Career Education Colleges and Universities was “pleased” with the decision “in favor of delaying the onset of the borrower defense to repayment and closed school discharge regulations.”
According to CECU President and CEO Jason Altmire, “Imposing these two provisions would have been detrimental to career schools in Texas and across the country.”
Reporting from The Washington Examiner:
The group's lawsuit stems from an April filing against the Education Department. The Biden administration rules went into effect in July and aims to expand the number of circumstances that justify loan relief. The Biden administration's policy, known as "borrower defense to repayment," expands the number of types of college misconduct that trigger loan forgiveness and provides more relief to defrauded borrowers while easing the process for applications. It also makes it easier for borrowers to obtain relief if their institutions close suddenly.
