AGs Defend Borrower Defense Rule

  • A group of 23 Democratic AGs, led by Massachusetts AG Andrea Joy Campbell, filed an amicus brief in the U.S. Court of Appeals for the Fifth Circuit case Career Colleges and Schools of Texas v. U.S. Department of Education, et al., urging the court to uphold the Department of Education’s (DOE) Borrower Defense Rule, which provides protection for student loan borrowers who are victims of fraud or financial wrongdoing by educational institutions.
  • The case is before the Fifth Circuit after the district court denied the motion for a preliminary injunction filed by a Texas trade organization representing for-profit and trade schools.
  • The AGs assert in their amicus brief that the DOE’s implementation of the Rule was lawful under the federal Higher Education Act and that the Rule’s “group discharge” process provides a streamlined process for addressing systemic institutional misconduct regarding student borrowers.
  • The AGs ask the court to affirm the district court’s denial of the motion for a preliminary injunction.