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Educational Institutions Federal Student Loans

Bowditch & Dewey

Department of Education Notification of Borrower Defense Claims

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Higher education clients who accept federal student loans may have recently received emails from the Department of Education (“Department”) notifying them of borrower defense claims seeking to avoid loan repayment obligations...more

Bond Schoeneck & King PLLC

U.S. Department of Education Updates List of Functions Covered by Third-Party Servicer Requirements under Federal Financial Aid...

The U.S. Department of Education (Department) recently surprised the higher education community with a Dear Colleague Letter (DCL GEN-23-03) that sets forth new guidance on third-party servicers with whom institutions of...more

Husch Blackwell LLP

Department of Education to Hold Higher Ed Leaders Personally Liable for Title IV Compliance Failures

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On Thursday, the Department of Education announced that, in certain circumstances, it will require leaders of institutions to assume personal liability as a condition of Title IV Federal Student Aid participation....more

Faegre Drinker Biddle & Reath LLP

U.S. Department of Education Proposes Revised Regulations on Borrower Defense and Other Student Loan Discharge Matters

On July 13, 2022, the U.S. Department of Education (the Department) published in the Federal Register a Notice of Proposed Rulemaking (the Proposed Rule) to revise its regulations governing student loan discharge standards...more

McGuireWoods LLP

U.S. Department of Education Officially Asserts Authority over Income Share Agreements

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On March 2, 2022, the U.S. Department of Education’s Office of Federal Student Aid (FSA) for the first time asserted regulatory authority over income share agreements (ISAs) as private education loans. FSA issued an...more

Alston & Bird

U.S. Department of Education Approves $415 Million in Borrower Defense to Repayment Discharges

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Our Education Team examines how the Borrower Defense Rule is again expanding under the Biden Administration, beginning with a huge decision involving, for the first time, for-profit schools that are still operating. Nearly...more

Hogan Lovells

Department of Education embarks on negotiated rulemaking

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On October 4, 2021, the U.S. Department of Education (ED) commenced the first of five negotiated rulemaking sessions. The five sessions are focused on the federal student financial aid programs authorized under Title IV of...more

Hogan Lovells

Coronavirus: The Hill and the Headlines – COVID-19 D.C. Update – September 2020 # 7

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In Washington - The bipartisan 50-member House Problem Solvers Caucus has drafted a US$1.5 trillion plan, the “March To Common Ground”, to provide coronavirus relief in an attempt to reignite negotiations on a deal before...more

Bricker Graydon LLP

COVID-19 update: U.S. Department of Education issues Title IV guidance

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On March 5, 2020, the U.S. Department of Education’s Office of Postsecondary Education issued an announcement, “Guidance for interruptions of study related to Coronavirus (COVID-19),” to address concerns arising with respect...more

Ballard Spahr LLP

Senate Dems Target For-Profit Colleges and Federal Student Loan Servicers and Collectors in Letter to Dept. of Education

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Last week, Senators Elizabeth Warren, Kamala Harris and Cory Booker sent a letter to the U.S. Department of Education’s Office of Civil Rights (OCR) requesting information about how OCR “plans to address alarming racial...more

McGuireWoods Consulting

The Current State of Higher Education Reauthorization

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The Higher Education Act (HEA) governs federal higher education programs, authorizing federal student-aid programs for postsecondary education and setting regulations for higher education institutions. First passed in 1965,...more

Faegre Drinker Biddle & Reath LLP

Final Rule on Borrower Defense and Financial Responsibility Published by U.S. Department of Education

On September 23, 2019, the U.S. Department of Education (ED or the Department) published in the Federal Register final regulations on Institutional Accountability, which revise its current regulations on borrower defenses to...more

Franczek P.C.

What Schools Can Do To Address Suspect Guardianship Orders in Financial Aid Decisions

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A recent Department of Education inquiry regarding transfers of guardianship of college-aged students in Illinois is making news across the country. The Department’s Office of the Inspector General is looking into the...more

Ballard Spahr LLP

Executive Order on education addresses federal student lending

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The White House last week issued an executive order entitled “Executive Order on Improving Free Inquiry, Transparency, and Accountability at Colleges and Universities.” ...more

Hogan Lovells

U.S. regulation of "foreign schools": Selected considerations for institutions participating in the U.S. Student Assistance...

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Under U.S. federal law, known as the Higher Education Act (HEA), eligible U.S. students may receive federal student aid to help pay for education expenses incurred to attend approved higher education institutions, including...more

Ballard Spahr LLP

Dept. of Education to issue guidance on arbitration ban

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As we reported, the Department of Education announced earlier this month that it would begin implementing its “borrower defense” final rule which was issued in November 2016 by providing discharges of federal student loans...more

Ballard Spahr LLP

Education Dept. to discharge federal student loans under borrower defense rule

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In a December 13 posting, the Department of Education announced that on December 14, it would begin sending emails to borrowers “to inform them that the company that handles billing and other services related to their federal...more

Ballard Spahr LLP

Court hears argument in association’s attempt to block Dept. of Education “borrower defense” rule from taking effect on Oct. 12

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Earlier this week, Judge Randolph D. Moss of the D.C. federal district court heard oral argument on the renewed motion for a preliminary injunction filed by the California Association of Private Postsecondary Schools (CAPPS)...more

Stinson LLP

Secretary of Education Seeks to Rescind Obama-Era Gainful Employment Regulations

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On August 14, 2018, Secretary of Education Betsy DeVos announced a Notice of Proposed Rulemaking (NPRM) that seeks to rescind the Obama-era Gainful Employment (GE) regulations applicable to for-profit educational...more

Hogan Lovells

Pursue Innovation or Maintain Eligibility? A Unique Faculty Model Could Cost an Institution $713 Million and its Future...

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Instructor. Regular. Substantive. Those three words, as defined by the U.S. Department of Education (“ED”) Office of Inspector General (“OIG”), resulted in OIG’s recent recommendation that Western Governors University (“WGU”)...more

Ballard Spahr LLP

Lawsuit filed challenging Dept. of Education “borrower defense” final rule banning arbitration

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The California Association of Private Postsecondary Schools (CAPPS) has filed a complaint in D.C. federal district court against the Dept. of Education and Education Secretary Betsy DeVos to overturn the “borrower defense”...more

Cooley LLP

Alert: All Institutions Face New Risks Under ED’s Final Borrower Defense Rule

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In this, the first in a series of client alerts that will explain the workings of the new Borrower Defense to Repayment Rule (BDTR), we explore what promises to be a series of rules, procedures and interpretations to be...more

Ballard Spahr LLP

Dept. of Ed. Bans Pre-Dispute Arbitration Agreements by Title IV Schools

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The U.S. Department of Education has issued a final rule that broadly addresses the ability of a student to assert a school's misconduct as a defense to repayment of a federal student loan. The final rule includes a ban on...more

Ballard Spahr LLP

Interagency task force issues recommendations on federal student loan servicing contracts

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Pursuant to a March 2015 Presidential directive, an interagency task force consisting of the Department of the Treasury, Department of Education, Office of Management and Budget, and Domestic Policy Council has issued...more

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