News & Analysis as of

Higher Education Act Department of Education Federal Student Loans

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

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

Ballard Spahr LLP

President Trump Takes Executive Action to Continue Federal Student Loan Relief During the COVID-19 Pandemic

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On August 8, 2020, President Trump signed four executive orders that are designed to provide additional COVID-19 relief as talks on Capitol Hill collapsed on August 7 between White House negotiators and Democratic leaders...more

Ballard Spahr LLP

Third Circuit rules CFPB lawsuit against federal student loan servicer did not preclude PA AG’s parallel lawsuit, federal law did...

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The U.S. Court of Appeals for the Third Circuit ruled last week in Commonwealth of Pennsylvania v. Navient Corp. that the PA Attorney General could bring a parallel enforcement action against Navient, a servicer of federal...more

Bradley Arant Boult Cummings LLP

Misrepresentation Claims Not Preempted: Eleventh Circuit Rules Against Preemption in Student Loan Case

As we’ve been tracking for over a year now, courts across the country have addressed the significant question of whether the federal laws governing federally owned or guaranteed student loans preempt state laws placing...more

Ballard Spahr LLP

Department of Defense Proposes Data Sharing Arrangement with Department of Education to Identify Service Members Eligible for 0%...

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A Federal Register entry published last week details a proposed data-sharing arrangement between the Department of Defense (DoD) and the Department of Education (DoE) designed to reduce the amount of interest that certain...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

Court allows Dept. of Education “borrower defense” final rule to take effect

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The “borrower defense” final rule (Final Rule) issued by the Dept. of Education in November 2016 took effect at noon Wednesday, after Judge Randolph D. Moss of the D.C. federal district court refused to grant the renewed...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

Ballard Spahr LLP

Education Dept. says state student loan servicing laws are preempted

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In response to the wave of new state student loan servicing laws and enforcement activity, the U.S. Department of Education has published an interpretation emphasizing that the Higher Education Act (HEA) preempts state...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

Hogan Lovells

U.S. Department of Education Announces Further Delays to Borrower Defense to Repayment Regulations

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On October 24, the U.S. Department of Education (“ED”) published an interim final rule to delay until July 1, 2018 the effective date of selected provisions of what have become known as the borrower defense to repayment...more

Ballard Spahr LLP

Another trade group seeks federal preemption guidance from ED

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The National Council of Higher Education Resources (NCHER), a national trade association representing higher education finance organizations, has written to the Department of Education urging the ED to issue preemption...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

Dept. of Education considering ban on use of arbitration agreements by schools receiving Title IV assistance

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We recently blogged about Public Citizen, Inc.’s petition to the Department of Education requesting the Department to adopt a rule requiring schools to agree, as a condition of receiving Title IV assistance under the Higher...more

Cooley LLP

Alert: Pending Rulemaking Likely to Expand Borrower Defenses Against Repaying Federal Direct Loans

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The US Department of Education (ED) is preparing for a new rulemaking that is intended to clarify—and very likely expand—the ability of student borrowers to be relieved of the obligation to repay their Federal Direct Loans....more

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