TICAS Statement on Court Ruling on the Borrower Defense Rule

“Today’s court decision is landmark news for student loan borrowers who were cheated by their colleges. The borrower defense rule that became effective at noon today protects students against illegal conduct by their college, offering relief that more than 100,000 borrowers have been waiting too long for already.  By holding colleges accountable, the rule will also deter bad behavior in the first place.

“Now, the Department of Education must immediately halt collections on their loans while quickly and fairly resolving their claims. The Department must write off the loans of students who attended schools that closed at least three years ago, such as Corinthian Colleges, and who have not returned to school. And the Department must ensure colleges are notifying their students that they are no longer denied their day in court by mandatory arbitration agreements.”