The U.S. Supreme Court has agreed to hear the federal government’s appeal of a lower court ruling halting the expansion of defenses that student loan borrowers can use to contest repayment.
An association of colleges challenged the U.S. Department of Education’s rule allowing students defrauded by the schools they attended to be given student loan forgiveness. Some borrowers claim schools have defrauded them by using unethical recruitment tactics or by advertising exaggerated post-graduation job placement figures.
The court granted the government’s petition in U.S. Department of Education v. Career Colleges and Schools of Texas on Jan. 10. No justices dissented. The court did not explain its decision. Oral argument in the case has not yet been scheduled….