Attorney General Becerra: Court Reinstates Borrower Defense Rule

  1. Press Release
  2. Attorney General Becerra: Court Reinstates Borrower Defense …
Tuesday, October 16, 2018
Contact: (916) 210-6000, agpressoffice@doj.ca.gov

Students Defrauded by For-Profit Colleges Now Eligible for Financial Relief 

SACRAMENTO – Attorney General Becerra today issued the following statement in response to the U.S. District Court ruling reinstating the Borrower Defense Rule. The ruling grants immediate relief to students of now-defunct schools who were enrolled when their schools closed, and who otherwise meet the requirements for closed school discharge.

“Today, the court ruled that the Borrower Defense Rule must immediately go into effect. That means tens of thousands of students defrauded by for-profit colleges are now eligible for financial relief,” said Attorney General Becerra. “While Betsy DeVos and the U.S. Department of Education have been doing the bidding of for-profit colleges, they now must implement this rule, and put first the students they are sworn to protect. While we are pleased with this decision, we know the fight is not over; our work continues to get student loan borrowers the relief they are owed and to hold accountable predatory for-profit schools.”

Attorney General Becerra has defended defrauded student borrowers and the Borrower Defense Rule at every turn: 

  • On July 6, 2017, he joined a coalition of 19 state attorneys general in filing a lawsuit against the Department of Education for unlawfully delaying the implementation of the Rule.
  • On July 13, 2017, he joined a coalition of 21 state attorneys general in criticizing the Department for proposing a new rulemaking process to replace the Rule.
  • On March 5, 2018, he led a coalition of 20 state attorneys general in submitting a letter to the Department opposing the proposals it offered during its rulemaking sessions to redraft regulations on borrower defense.
  • On August 30, 2018, he led a coalition of 21 attorneys general to submit a comment letter sharply rebuking the Department’s proposed changes to borrower defense regulations.
  • On October 11, 2018, Attorney General Becerra led a coalition of eight attorneys general to file an amicus brief in support of students defrauded by Corinthian Colleges, and the students’ right to full relief.

A copy of the decision can be found here.

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