An Obama-era rule designed to help students cheated by for-profit colleges get relief on their education debt finally took effect on Oct. 16 after efforts by the Trump administration to block it.
A federal judge on Oct. 16 ordered the immediate implementation of the rule, known as Borrower Defense to Repayment. Attorneys general from 18 states and Washington, D.C., had sued the U.S. Department of Education in response to the delay.
“Today’s decision is a huge win for defrauded borrowers around the country,” said Julie Murray, a Public Citizen attorney who represents two students involved in the lawsuit.
The protection provides automatic federal loan forgiveness for students who were unable to complete their education because their schools ceased operation during their enrollment. Students from more than 1,400 schools that closed between 2013 and 2015 may now be eligible for loan forgiveness, according to an estimate by the Century Foundation.
Education Secretary Betsy DeVos has drawn criticism from education unions and consumer advocacy groups for siding with the for-profit college industry over its students and for hiring numerous officials with ties to the industry.