The U.S. Department of Education broke the law when it announced a delay of a rule designed to protect students defrauded by predatory for-profit colleges and career training programs, two borrowers said in a lawsuit filed today in the U.S. District Court for the District of Columbia. The borrowers are represented by Public Citizen and the Project on Predatory Student Lending of the Legal Services Center of Harvard Law School.
The lawsuit was brought by Meaghan Bauer and Stephano Del Rose, former students of the for-profit New England Institute of Art (NEIA) in Brookline, Mass. They allege that NEIA, which is owned by Education Management Corporation (EDMC), engaged in unfair and deceptive practices against them and other students that left them with a useless education, few job prospects and a mountain of debt. The students intend to bring suit against the school for its conduct in court, on behalf of a class. They also have asserted a federal right to have the Education Department cancel loans that the students obtained to attend the school based on the school’s unlawful conduct. The lawsuit seeks to invalidate the Department’s delay of the rule, and would allow the rule to take effect for all borrowers.