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Two former students of an Education Management Corporation-owned for-profit college have filed suit to intervene as defendants in a lawsuit challenging borrower-defense regulations.
The Department of Education cited the lawsuit, which was brought by an association of California for-profit colleges, in announcing a delay of the borrower-defense rule this week.
The students attended New England Institute of Art in Massachusetts and were subject to a forced-arbitration clause blocking students from bringing suit together. They planned to file a lawsuit against the for-profit alleging violation of the Massachusetts Consumer Protection Act after the borrower-defense rule's prohibition on enforcement of forced-arbitration clauses took effect.
