Durbin, Waters Introduce CLASS Act To Give Students Cheated By For-Profit Colleges Their Day In Court

Durbin, Waters Introduce CLASS Act To Give Students Cheated By For-Profit Colleges Their Day In Court

WASHINGTON - U.S. Senate Democratic Whip Dick Durbin (D-IL) and U.S. Representative Maxine Waters (D-CA-43) today reintroduced bicameral 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 decades, for-profit colleges have used the fine print in student enrollment agreements to force students to give up their rights to go to court over the predatory behavior of these institutions," said Durbin. "Students should have the right to hold for-profit colleges responsible for defrauding them in court. I'm reintroducing the CLASS Act with Congresswoman Waters to end the for-profit college industry's ability to use this shady practice to evade accountability."

"I am proud to reintroduce the CLASS Act with Senator Durbin to hold predatory for-profit colleges accountable when they defraud students," said Waters, the Ranking Member of the Financial Services Committee. "The for-profit college industry is rife with bad actors that lure potential students into expensive academic programs, while knowingly and fraudulently misrepresenting the quality of the programs. These unscrupulous schools then use mandatory arbitration clauses to prevent students from taking them to court, thereby shielding themselves from being held responsible for wrongdoing. Our legislation will ensure that defrauded students retain the right to sue predatory schools and have their day in court."

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

1. 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;

1. Ensuring that the Federal Arbitration Act, which governs the enforcement of arbitration proceedings, would not apply to student enrollment agreements;

1. Taking effect one year after enactment to allow schools to make any necessary changes; and

1. 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.

Along with Durbin, the CLASS Act is cosponsored by U.S. Senators Richard Blumenthal (D-CT), Jack Reed (D-RI), Ed Markey (D-MA), Elizabeth Warren (D-MA), Mazie Hirono (D-HI), John Fetterman (D-PA), Sheldon Whitehouse (D-RI), Cory Booker (D-NJ), Chris Van Hollen (D-MD), Ron Wyden (D-OR), and Kirsten Gillibrand (D-NY).

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 forCollege 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.

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