WEBVTT - Bloomberg Law Brief: State AGs Sue DeVos (Audio)

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<v Speaker 1>Now it's time for our daily of Bloomberg Lobbref, exploring

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<v Speaker 1>legal issues in the news, and today Bloomberg, Lahouse student

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<v Speaker 1>Grosso and Greg Sture discuss why nineteen US state Attorneys

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<v Speaker 1>general are suing Education as Secretary Bessie de Vos for

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<v Speaker 1>delaying protections for student borrowers. They speak with Catherine Lee Carry,

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<v Speaker 1>special counsel at Cooley. These are complicated rules are a

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<v Speaker 1>lot of different aspects to them, including standards that apply

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<v Speaker 1>when students who say they were defrauded want to get

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<v Speaker 1>out of having to pay the debts. What are the

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<v Speaker 1>attorneys generals seem most focused on in their lawsuit? The

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<v Speaker 1>ages are focused on for two primary issues, one being

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<v Speaker 1>what they considered to be deprivation of rights and benefits

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<v Speaker 1>for their enforcement actions, and the other being what they

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<v Speaker 1>consider to be harmed for to students. If the regulations

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<v Speaker 1>are rolled back, Specifically, as part of the new rules,

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<v Speaker 1>the Department of ED would have considered as part of

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<v Speaker 1>their process for determining whether or not student claims had

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<v Speaker 1>a basis or if a group claim could be created,

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<v Speaker 1>would be using an a g S successful enforcement action

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<v Speaker 1>against the school. And then on the student side, they

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<v Speaker 1>They are primarily focused on the idea of students having

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<v Speaker 1>the personal um rights of action against the school through

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<v Speaker 1>litigation as opposed to arbitration or class action that has

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<v Speaker 1>that would would have been essentially barred by the July

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<v Speaker 1>one rule, where schools could not force a student to

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<v Speaker 1>enter into an arbitration agreement or a class action waiver

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<v Speaker 1>prior to um an actual dispute coming up Kate. This

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<v Speaker 1>lawsuit came three days after the d C. Appeals Court

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<v Speaker 1>reviewed the e p A for unilaterally delaying Obama era

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<v Speaker 1>methane regulations? Did divas do the same thing here by

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<v Speaker 1>not engaging in the legal process for changing or rescinding regulations?

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<v Speaker 1>There does seem to be some correlation between the arguments

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<v Speaker 1>that are being made on both sides the There are

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<v Speaker 1>a couple of things that that seemed to distinguish the two.

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<v Speaker 1>One is that the e p A rule was already

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<v Speaker 1>in effect and it was just a certain provision of

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<v Speaker 1>the rule that was to go and effect in June

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<v Speaker 1>that they were trying to roll back, as opposed to

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<v Speaker 1>the borrow defense rule, which had not become effective yet

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<v Speaker 1>at the time that they are trying to stay the rule.

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<v Speaker 1>But I do think that there are some similar legal

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<v Speaker 1>issues that will likely come up um in this A

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<v Speaker 1>G case that's similar to the case that came up

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<v Speaker 1>with the A P A in relation to their authority

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<v Speaker 1>to delay a rule that already went through the negotiated

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<v Speaker 1>rulemaking process and as Catherine and the League carry Special

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<v Speaker 1>Council at Cooley speaking with Bloomberg Law House, Jun Grosso

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<v Speaker 1>and Greg's store. You can listen to Bloomberg Law weekdays

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<v Speaker 1>at one pm Wall Street Time here on Bloomberg Radio,

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<v Speaker 1>and that's this morning's Bloomberg Law Brief. You can find

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<v Speaker 1>more legal news at Bloomberg Law dot com and Bloomberg

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