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NEWS JULY 20, 2020 ¦ 9

additional requirements on a via- coalition is fighting this gross in-
ble misrepresentation defense that justice and demanding that the
are so onerous that they make this Department of Education and
defense impossible for a student The suit contends that Secretary DeVos, for once, stop
loan borrower to assert success- Trump administration placing students in harm’s way,”
fully.” Education Secretary Betsy added James. “Students have a
DeVos has replaced an right to a fair, consistent, and
“Amongst other arbitrary
impediments,” continues the com- Obama-era rule with one transparent process of seeking
plaint, “the 2019 Rule requires that “drastically” limits debt relief, and predatory busi-

borrowers to prove by a prepon- repayment defenses for nesses and institutions have an
derance of the evidence not merely obligation to bear the cost of their
that their school misrepresented a deceived borrowers. misconduct.”

material fact, but that the school In the complaint, the coalition
did so knowingly or with reckless of state plaintiffs also contends
disregard for the truth. that the “2019 Rule brims with
“A school may misrepresent the job or earnings ill-disguised contempt for struggling students, cas-
prospects of its graduates, the likelihood of com- tigating them as irresponsible, prone to making
pleting its program, even the vocational licensing frivolous claims on pretextual grounds, when the
requirements of state law—but a borrower cannot supposedly true source of their financial difficulties
assert these misrepresentations as a defense unless are their own poor career decisions.” The states fur-
he or she can prove that the school did not simply ther argue that “the true intended beneficiary of the
make a mistake,” says the complaint. 2019 Rule is the for-profit school industry.”
New York Attorney General Letitia James said The lawsuit brings two causes of action, both of
Wednesday that DeVos’s repeal of the Obama-era rule which cite the federal Administrative Procedure
“is just the latest in the long list of actions the Trump Act. One contends that DeVos’ actions in regard
Administration has taken to prioritize profits for to the rule repeal are arbitrary, capricious, and an
predatory schools over the success of our students.” abuse of discretion, while the other argues in part
The education department’s replacement rule that her actions are “not in Accordance with Law
“does nothing more than prevent borrowers from and are in Excess of Statutory Jurisdiction, Author-
obtaining the relief they need, which is why our ity, or Limitations.”
¦

Trump Lawyers Agree To Expedited
Litigation Over Financial Records

By Jane Wester
President Donald Trump intends to file an Trump sued Manhattan District Attorney Cyrus
amended complaint in federal court to intro- Vance Jr. in the federal court for the Southern
duce new arguments against a Manhattan grand District of New York in September, arguing that
jury’s subpoena for his tax records, according to doc- presidents are immune from state prosecution.
uments filed by his attorney Wednesday. The case was eventually heard by the U.S. Supreme
In the same communication, the president’s legal Court, which rejected Trump’s immunity argument
team listed a number of potential arguments it could in a 7-2 ruling July 9.
make to trim the subpoena or contest it entirely.
¦ Continued on PAGE 10

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