We're committed to keeping you informed and calling your attention to changes in the industry. Recently, the U.S. Department of Education (ED) postponed the implementation of the Borrower Defense to Repayment regulations, which were set to take effect July 1, 2017.
The postponement was announced in the Federal Register (82 FR 27621), June 16, 2017 and is in effect until judicial challenges to the final regulations are resolved.
What this means for you right now:
- The federal standard for borrower defense to repayment for loans first disbursed on or after July 1st 2017 will not take effect.
- Changes to institutional financial responsibility rules won't be implemented.
- There is no current prohibition for participating schools related to use of certain contractual provisions such as mandatory pre-dispute agreements or class action waivers for dispute resolution.
The Borrower Defense to Repayment regulations were published November 1, 2016, and can be found in the Federal Register (81 75926).
We hope that this is helpful and appreciate all you do to assist your borrowers.