Wyden, Colleagues Introduce Class Act to give Students Cheated by For-Profit Colleges Their Day in Court

Wyden, Colleagues Introduce Class Act to give Students Cheated by For-Profit Colleges Their Day in Court

Washington D.C.-U.S. Senator Ron Wyden, D-Ore., said today he has joined colleagues to reintroduce legislation designed to strengthen students' ability to hold for-profit colleges accountable in court for their misconduct.

The Court Legal Access and Student Support (CLASS) Act would enhance accountability for for-profit colleges and safeguard taxpayer dollars by prohibiting an institution of higher education from receiving Title IV federal student aid if the school's enrollment agreement requires mandatory arbitration or otherwise restricts students' ability to pursue claims against the school in court.

"For-profit colleges must be held accountable for misleading people working hard to get an education, and no student should have to sign a non-disclosure agreement to secure thateducation," Wyden said. "Students are already dealing with the skyrocketing costs of college across the country, and I am committed to support students to reduce these costs and empower them to hold bad-actors accountable with legislation like the CLASS Act.".

Specifically, the CLASS Act would enhance the accountability of for-profit colleges and safeguard taxpayer dollars by:

• Prohibiting an institution of higher education from receiving federal student aid if the school's enrollment agreement requires mandatory arbitration or restricts students' ability to pursue claims against the school in court;
• Ensuring the Federal Arbitration Act, which governs the enforcement of arbitration proceedings, would not apply to student enrollment agreements;
• Taking effect one year after enactment to allow schools to make any necessary changes; and
• Exempting legitimate non-profit colleges and universities because these institutions do not include mandatory arbitration clauses in their enrollment agreements. The CLASS Act thus squarely focuses on schools that might seek to profit off of students while hiding from accountability in a court of law.

The legislation was led by U.S. Senator Dick Durbin, D-Ill., and U.S. Representative Maxine Waters, D-Calif. Along with Wyden, the CLASS Act is cosponsored by Senators Richard Blumenthal, D-Conn., Jack Reed, D-R.I., Edward J. Markey, D-Mass., Elizabeth Warren, D-Mass., Mazie Hirono, D-Hawaii, John Fetterman, D-Pa., Sheldon Whitehouse, D-R.I., Cory Booker, D-N.J., Chris Van Hollen, D-Md., and Kirsten Gillibrand, D-N.Y.

The bill has earned the endorsement of Consumer Action; The Institute for College Access and Success; National Consumer Law Center (on behalf of its low income clients); National Association for College Admission Counseling; Veterans Education Success; National Association of Consumer Advocates; American Association for Justice; Center for Justice and Democracy; Woodstock Institute; Public Justice; Earthjustice; Public Citizen; The National Employment Lawyers Association; Americans for Financial Reform; National Consumers League; Consumer Federation of America; Young Invincibles; and Center for Responsible Lending.