Borrow defense regulations update

In November 2016, the U.S. Department of Education (ED) published final regulations to protect borrowers and taxpayers from misconduct by postsecondary institutions. These rules, which become effective on July 1, 2017, were prompted by a large number of borrower defense claims following the closure of Corinthian Colleges. The new rules require more transparency about an institution’s financial condition and enhanced borrower protections than were provided by previous regulations established in 1995. Certain provisions of the new rules have been perceived by many institutions as onerous and expensive to implement. As a result of these concerns, ED allowed for a comment period, during which institutions could submit comments or suggestions on various aspects of the regulations.

Further information about the Borrow Defense Regulations >