Washington, D.C. – A federal appeals court on Monday blocked the Biden administration’s new borrower defense to repayment rules aimed at protecting student loan borrowers who attended for-profit institutions and were defrauded by their school.

In response, Jaylon Herbin, director of federal campaigns at the Center for Responsible Lending (CRL), made the following statement:

The decision by the appeals court to block Biden's new student debt relief policy for defrauded borrowers is disappointing. For far too long, for-profit schools have exploited the system and deceived borrowers, leaving them in a crippling cycle of debt. Tens of thousands of student loan borrowers have been misled by their schools with false advertisements for job prospects or have been left in limbo once their school suddenly closed. The administration's efforts to make debt relief more accessible, especially in cases of sudden school closures, are crucial for safeguarding the interests of students attending any type of school— not just for-profits. The expansion of the borrower defense to repayment rules to provide more generous relief to defrauded borrowers is vital.


Press Contact: Vincenza Previte vincenza.previte@responsiblelending.org

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