Published: November 2023

CLASS Act would give students defrauded by for-profit colleges their day in court

Advocates supported members of Congress who proposed the Court Legal Access and Student Support (CLASS) Act, legislation that would prohibit a school from receiving federal student aid if it requires mandatory arbitration or otherwise restricts students’ ability to pursue claims against the school in court.

Fellow lawmakers and more than a dozen advocacy organizations, including Consumer Action, supported the reintroduction of the Court Legal Access and Student Support (CLASS) Act by U.S. Senate Majority Whip Dick Durbin (D-IL) and U.S. Representative Maxine Waters (D-CA). 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, the legislation would ensure that students defrauded by for-profit colleges would retain the right to their day in court. The statement from the lawmakers points out that legitimate nonprofit colleges and universities do not include mandatory arbitration clauses in their enrollment agreements; the legislation is squarely focused on the for-profit college industry, which has a record of predatory practices that leave many students with insurmountable debt, while the schools avoid accountability.

Lead Organization

U.S. Senate Majority Whip Dick Durbin (D-IL) and U.S. Representative Maxine Waters (D-CA-43)

More Information

Read the letter here.

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