Court Rules
All enforcement actions
CoalitionLow RiskMultistate

Multistate Amicus Brief Challenges ED's 2019 Borrower Defense Rule

U.S. Department of EducationAugust 2, 2021Connecticut Attorney General

Summary

Attorney General William Tong of Connecticut joined a multistate amicus brief in the U.S. Court of Appeals for the Second Circuit, supporting a lawsuit that challenges the Trump administration's 2019 Borrower Defense Rule. The rule weakened protections for students defrauded by for-profit schools by making it harder to obtain federal student loan debt relief. The amicus brief argues that the rule is arbitrary and capricious and should be eliminated.

Contract Impact

In-house legal teams should review enrollment agreements, student financial aid documents, and any contracts with educational institutions (particularly for-profit schools) that incorporate or reference federal student loan programs. Key clauses to examine include borrower defense to repayment provisions, false certification discharge terms, school closure discharge procedures, and any representations regarding program eligibility or gainful employment compliance. Changes may be needed to ensure contracts do not waive borrower rights, clearly outline fraud-based discharge processes, and align with the reinstated, stronger borrower protections if the 2019 rule is invalidated. Teams should also assess data sharing and certification clauses that could trigger liability under borrower defense claims.

Contract Search Terms

borrower defense to repaymentfalse certification dischargeschool closure dischargegainful employment ruleprogram eligibility requirementsdebt relief applicationpredatory for-profit school prohibitionsfederal student loan terms

Laws Cited

Higher Education Act

Violation Types

Entity Details

Entity

U.S. Department of Education

Also known as: Department of Education

Industry

Education

Multistate Coalition

Official Sources

Related Enforcement Actions

NY

U.S. Department of Education

New York Attorney General Letitia James, joined by 16 other states, sued the U.S. Department of Education over a new survey requiring colleges to submit extensive student data, arguing it violates the Administrative Procedure Act and threatens student privacy. The lawsuit seeks to block the mandate and prevent penalties for non-compliance.

CT

U.S. Department of Education

Connecticut Attorney General William Tong joined a coalition of 17 attorneys general in filing a lawsuit against the U.S. Department of Education to stop new data reporting requirements under IPEDS that demand detailed student information. The coalition argues the requirements are unlawful, arbitrary, and jeopardize student privacy by requesting in-depth data that could lead to inadvertent errors and baseless investigations. The lawsuit seeks an injunction to block the implementation of these requirements.

CA

U.S. Department of Education

California Attorney General Rob Bonta filed a lawsuit against the U.S. Department of Education to block the expansion of IPEDS data collection requiring colleges to submit race-linked student data. The lawsuit argues the demand is arbitrary, capricious, and burdensome, and could enable costly partisan investigations. A multistate coalition co-led the challenge.

WA

U.S. Department of Education

Attorney General Nick Brown of Washington led a coalition of 17 state attorneys general in filing a lawsuit against the U.S. Department of Education on March 11, 2026, challenging new requirements for the IPEDS survey that demand race- and sex-disaggregated student data retroactive seven years. The coalition alleges the rushed rule violates the law, jeopardizes student privacy by collecting in-depth student information, and imposes undue burdens on institutions with unclear data definitions and risk of severe penalties for errors. The lawsuit seeks to invalidate the rule, arguing it was arbitrarily implemented without proper procedure and poses widespread privacy risks to students.

IL

U.S. Department of Education

Illinois Attorney General Kwame Raoul, joined by 16 other attorneys general, filed a lawsuit against the U.S. Department of Education to stop new data collection requirements under IPEDS that threaten student privacy by requesting sensitive personal information including income, test scores, and GPA.

MA

U.S. Department of Education

Massachusetts Attorney General Andrea Campbell co-led a coalition of 17 attorneys general in filing a lawsuit against the Trump Administration to stop new data reporting requirements for colleges and universities through IPEDS. The requirements demand detailed student data disaggregated by race and sex, retroactive for seven years, which the coalition argues jeopardizes student privacy and could lead to baseless investigations.