arbitration student loan

U.S. Department of Education Axes Arbitration Provisions in Final Student Loan Rules

By Mark J. Levin & John L. Culhane, Jr. on November 3, 2022

Posted in Arbitration, Dept. of Education, Regulatory and Enforcement, Student Loans

The U.S. Department of Education recently announced final regulations, effective July 1, 2023, designed to expand and improve the major student loan discharge programs authorized by the Higher Education Act. Among other things, the final regulations prohibit institutions that participate in the Federal Direct Loan program from requiring borrowers to sign mandatory pre-dispute arbitration agreements or class-action waivers that would be applicable to disputes about Direct Loans. … Continue Reading

Dept. of Education finalizes regulations allowing use of pre-dispute arbitration agreements by schools receiving Title IV aid for student borrowers

By John L. Culhane, Jr. on September 16, 2019

Posted in Arbitration, Dept. of Education, Regulatory and Enforcement, Student Loans

In less than a year, pre-dispute arbitration agreements will be clearly permissible again now that the Department of Education has finalized its proposal to rescind the Obama administration’s “Borrower Defense” rule issued in November 2016 and replace it with “Institutional Accountability Regulations.” The final regulations are effective July 1, 2020 and apply to loans disbursed on or after that date.… Continue Reading