Former For-Profit Students Intervene in Borrower-Defense Lawsuit

The Department of Education cited the lawsuit, which was brought by an association of California for-profit colleges, in announcing a delay of the borrower-defense rule this week.

The students attended New England Institute of Art in Massachusetts and were subject to a forced-arbitration clause blocking students from bringing suit together. They planned to file a lawsuit against the for-profit alleging violation of the Massachusetts Consumer Protection Act after the borrower-defense rule’s prohibition on enforcement of forced-arbitration clauses took effect.