New U.S. Department of Education rules, effective July 1, 2020, create complexity as to applicable requirements concerning the borrower defense discharge, the closed school discharge, and school use of mandatory arbitration clauses. This article explains varying rules for loans issued prior to July 1, 2017, from July 1, 2017 through June 30, 2020, and after July 1, 2020.
Student Loans, Schools
New Defenses to Student Loan Repayment Based on School Misconduct and Closures
This article describes Oct. 28 Department of Education rules providing key new rights for student loan borrowers: arbitration limits, school-related defenses to loans, and strengthened closed school and false certification discharges.