A federal judge this week ruled has against the Trump administration in a case that challenged the Education Department’s delayed implementation of Obama-era regulations aimed at shielding students from predatory lending practices.
The case was brought against Education Secretary Betsy DeVos last year by 19 states whose attorneys generals accused her of illegally postponing the rules, which were supposed to take effect on July 1, 2017. DeVos said in a press release at the time the Obama-era guidelines contributed to a “muddled process that’s unfair to students and schools.”
“Fraud, especially fraud committed by a school, is unacceptable. Unfortunately, last year’s rulemaking effort missed an opportunity to get it right … It’s time to take a step back and make sure these rules achieve their purpose: helping harmed students,” Devos said last June.
But U.S. District Court Judge Randolph Moss wrote in a 57-page opinion this week that DeVos’ department deprived student loan borrowers “of several concrete benefits they would have otherwise accrued” had the rules developed by the Obama administration been implemented on time.
“The relief they seek in this action — immediate implementation of the Borrower Defense regulations — would restore those benefits,” Moss wrote.
A hearing on the appropriate remedies for the plaintiffs is scheduled for Friday.
Democratic Sen. Elizabeth Warren celebrated the ruling against DeVos, calling it a “crushing defeat” for Trump’s Education department and “a huge win for students who have been scammed by [for-profit] colleges.”
This is a crushing defeat for @BetsyDeVosED, and a huge win for students who have been scammed by #4profit colleges. Way to go Maura! https://t.co/dWuH8FTCeU
— Elizabeth Warren (@SenWarren) September 12, 2018
The Obama-era rules targeted by DeVos were developed in October 2016 in response to an “unprecedented influx” in the number of students claiming they were defrauded by for-profit education institutions.
A spokesperson for the Education Department did not respond to a request for comment.
