Lawyer Commentary Mondaq United States Borrower Defense To Repayment Rule Heads To U.S. Supreme Court While Student Loan Forgiveness Enters Final Rounds

Borrower Defense To Repayment Rule Heads To U.S. Supreme Court While Student Loan Forgiveness Enters Final Rounds

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Supreme Court Review of 2022 BDR Final Rule

On January 10, 2025, the U.S. Supreme Court granted the Department of Education's petition for a writ of certiorari to review the U.S. Court of Appeals for the Fifth Circuit's decision in Career Colleges and Schools of Texas v. Department of Education that preliminarily enjoined, on a nationwide basis, the 2022 borrower defense to repayment (BDR) final rule. 87 Fed. Reg. 65,904 (Nov. 1, 2022). The scope of the Supreme Court case will be limited to the first question presented: "[w]hether the court of appeals erred in holding that the Education Act does not permit the assessment of borrower defenses to repayment before default, in administrative proceedings, or on a group basis." The case will not involve the second question presented by the Department: "[w]hether the court of appeals erred in ordering the district court to enter preliminary relief on a universal basis."

Career Colleges and Schools of Texas...

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