New Student Loan Rules Enjoined. Really Enjoined.
April 9, 2024In a muscular display of appellate review, in Career Colleges & Schools of Texas v. U.S. Dep’t of Educ., the Fifth Circuit:
- Disagreed with the district court’s conclusion that an association of career schools lacked standing due to a lack of immediate irreparable injury, identifying three types of injury suffered as a result of new DOE regulations about certain defenses to student-loan repayment;
- Concluded that, as a matter of law, the association had satisfied the requirements for a preliminary injunction;
- Gave the resulting injunction nationwide effect; and
- Ordered: “The stay pending appeal remains in effect until the district court enters the preliminary injunction.”
No. 23-50491 (April 4, 2024).
