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US Education Secretary Betsy DeVos lost a lawsuit filed by 19 states and the District of Columbia, accusing her department of wrongly delaying implementation of Obama's by-laws to protect students loans.
A Washington federal court judge on Wednesday ruled that the department's deferral of the so-called borrowers defense rule was procedurally flawed.
The Obama administration has created the rule as a result of revelations that some for-profit colleges have attracted students with promises of education and degrees allowing them to secure jobs in the fields of their choice. In fact, many of these certifications were not recognized by potential employers, leaving graduates with student loans they could not repay.
The department denied the plaintiffs "many tangible benefits they would otherwise have obtained," US District Judge Randolph Moss wrote in a 57-page notice. "The relief they're looking for in this action – the immediate implementation of the borrower's defense regulations – would restore those benefits."
In writing that he did not want to delay things further, Moss said he would hold a hearing Friday to consider the appeals.
The Department of Education did not respond immediately to a request for comment.
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