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Key Hearing Tuesday In Borrower Defense Case

A key court hearing is scheduled for Tuesday in a case involving an industry group’s challenge to the U.S. Department of Education’s 2016 borrower defense rule.

Last month, a federal judge ruled in a related case that the department had illegally acted to delay the 2016 borrower defense rule, which incorporated critical protections for students. The Project on Predatory Student Lending and Public Citizen are representing two former students of the New England Institute of Art in that case, Bauer v. DeVos.

The judge is giving the department until Friday to decide whether to attempt to delay the Obama-era rule further. He scheduled the Tuesday hearing to hear the industry group’s request to block the 2016 rule while the courts are considering the industry group’s claims. The Project and Public Citizen will present argument on behalf of their borrower clients, including Meaghan Bauer, who are participating in the case to help defend the borrower defense rule.

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