Earlier this month, the U.S. Department of Education announced that it will delay important new rules that protect student loan borrowers from predatory and deceptive practices.
North Carolina Attorney General Josh Stein released the following statement in response:
“Education is one of the best reasons I can think of to borrow money. But unfortunately, there are some in our world who take advantage of those who are vulnerable – and that includes student borrowers. As North Carolina’s Attorney General, protecting people, including students is my top priority.
“That is why I find this news deeply troubling. The rules, which were to take effect on July 1, would protect student borrowers – delaying them is misguided and irresponsible.
“These delayed rules were hard-fought and sound consumer protection measures born out of the problems that other attorneys general and I have seen plague student borrowers time and time again.”
The delayed protections include:
- Prohibiting schools from forcing students to pursue complaints in arbitration rather than in court;
- Prohibiting schools from requiring students to waive participation in class action lawsuits; and
- Providing automatic relief and group relief for defrauded federal student loan borrowers in certain circumstances, including following legal actions by state attorneys general.