A U.S. district court has found that two graduates of a Massachusetts for-profit college have standing to challenge the U.S. Department of Education’s recent decision to delay implementation of the borrower defense regulation, which shifts loan repayment responsibility from the student to the school if it’s found that the school engaged in misconduct.

A federal judge has ruled that Education Secretary Betsy DeVos' move to ease protections for former students of for-profit colleges should be reversed, handing a victory to those who said they were defrauded by their schools. But U.S. District Judge Randolph Moss put his ruling on hold for 30 days, giving the Education Department and others a chance to respond.

President Trump, who paid $25 million to settle allegations he defrauded Trump University students, and whose private-school education was covered entirely by his parents, was handed a legal defeat last week in his efforts to ignore a rule enacted by the Obama administration to protect student borrowers.

The Trump administration on Friday asked the court for another chance to delay an Obama-era policy meant to boost protections for students defrauded by for-profit schools. The request came two days after the court ruled that Education Secretary Betsy DeVos' move to freeze the regulation known as Borrower Defense was “arbitrary and capricious.”

A tug-of-war between student borrowers hoping to get tens of thousands of dollars in loans they took out for their education discharged and the government may be a step closer to resolution. A federal judge ruled this week that repeated delays by Education Secretary Betsy DeVos of an Obama administration plan to provide debt relief to defrauded borrowers was unlawful.

A federal judge will rule Friday on how to address an improper decision by Education Secretary Betsy DeVos to freeze a plan to help student loan borrowers who were cheated by their schools. A new Education Department rule would have sped up and expanded a system for erasing the federal loan debts of students at schools that broke state laws and misled their attendees.

A federal court has ruled that it was “arbitrary and capricious” for Education Secretary Betsy DeVos to delay an Obama-era rule meant to protect students swindled by for-profit colleges. The decision is a significant blow to the Trump administration’s attempt to ease regulations for the industry.

A federal judge has ruled that Education Secretary Betsy DeVos' delay of a key student borrower protection rule was improper and unlawful. "This is such an important win for student borrowers and anyone who cares about a government that operates under the rule of law," says Toby Merrill, of Harvard Law School's Project On Predatory Student Lending.