January 29, 2019

While many for-profit schools previously tried to insulate themselves from lawsuits using forced arbitration clauses and class action bans, a rule that went into effect in October 2018 conditions school participation in the federal student loan program on agreement not to enforce these clauses against students with consumer claims. The Department has proposed rescinding the rule, but the soonest that would happen is July 2020 – so there is a short window for many students to sue in court.

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