Posted Date: June 19, 2017
Author: Lynn B. Mahaffie, Deputy Assistant Secretary for Policy, Planning, and Innovation
Subject: Final Rule, Notification of Partial Delay of Effective Dates for “Borrower Defense to Repayment” Regulations
On June 16, 2017, the Department published a final rule in the Federal Register announcing a postponement, until further notice of certain provisions of the final regulations published on November 1, 2016, commonly known as the “Borrower Defense to Repayment” regulations.
On May 24, 2017, the California Association of Private Postsecondary Schools filed a “Complaint and Prayer for Declaratory and Injunctive Relief” in the United States District Court for the District of Columbia (Court). In accordance with section 705 of the Administrative Procedures Act and in light of the existence and potential consequences of the pending litigation, the Department has concluded that justice requires it to postpone certain provisions of the final regulations pending judicial review.
Information on the specific provisions of the “Borrower Defense to Repayment” regulations that have been designated for a delayed effective date is provided in the Federal Register notice.