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June 2, 2025

Trump's DOJ surprisingly defends Biden student debt relief at Supreme Court

Newsweek
Lauren Nowacki
library.nclc.org
CNN
NBC News
+11

Trump's DOJ defends Biden rule helping defrauded students get loan forgiveness.

Trump's Justice Department announced on Jun. 2, 2025, that it will defend Biden's borrower defense rule at the Supreme Court, arguing the Education Department may discharge loans before default and on a group basis. (Source: Question 1)

Career Colleges & Schools of Texas, a trade organization representing private career institutions, filed the lawsuit challenging Biden's borrower defense rule. (Source: Question 2)

The Supreme Court narrowed its review to whether the Higher Education Act authorizes pre-default and group borrower defense relief, explicitly refusing to review the Fifth Circuit's nationwide injunction. (Source: Question 3)

In Jan. 2025, the Education Department cancelled loans for 150,000 borrowers, with the majority obtaining relief through the borrower defense process. (Source: Question 8)

Predatory colleges such as Corinthian and ITT Tech systematically defrauded entire classes of students using identical false recruitment and placement-rate claims, making group discharge authority essential for efficient relief. (Source: Question 5)

The Supreme Court's decision in Loper Bright Enterprises v. Raimondo eliminated Chevron deference, requiring courts to interpret agency-administered statutes independently rather than deferring to agency interpretations. (Source: Question 6)

On Jan. 28, 2025, Trump asked the Supreme Court to pause its review of the borrower defense regulations to "reassess the basis for and soundness" of those rules before later deciding to defend them. (Source: Question 7)

Trump University was not an accredited university or college, conferred no degrees or credits, and functioned as a seminar program despite New York State Education Department warnings about the unlawful use of "university." (Source: Question 12)

👨‍⚖️Judicial Review📋Public Policy🎓Education

People, bills, and sources

Solicitor General John Sauer

filed the Jun. 2, 2025 brief defending the Education Department's borrower defense rule at the Supreme Court. (Source

What you can do

1

Read the Solicitor General’s brief defending borrower defense at Inside Higher Ed: https://www.insidehighered.com/news/quick-takes/2025/06/02/trump-admin-defend-borrower-defense-regs-supreme-court to understand the government’s legal argument.

2

Examine the lawsuit filed by Career Colleges & Schools of Texas on Higher Ed Dive: https://www.highereddive.com/news/supreme-court-to-examine-biden-administrations-borrower-defense-rule/737226/ to review the trade group’s challenges to group discharge procedures.

3

Consult the National Consumer Law Center’s guide to borrower defense relief at https://library.nclc.org/article/student-loan-borrower-rights-after-supreme-court-ruling for step-by-step instructions on filing claims before default.