Department of Education v. Career Colleges and Schools of Texas

	Department of Education v. Career Colleges and Schools of Texas
	Term: 2025
	Important Dates
	Dismissed: August 11, 2025.
	Outcome
	dismissed

Department of Education v. Career Colleges and Schools of Texas is a case scheduled for argument before the Supreme Court of the United States during the court's October 2025-2026 term.

The case was originally set to be argued during the October 2024-2025 term, but the court paused briefings on February 6, 2025. On June 23, 2025, the court decided to resume the briefings.^[1] The case was dismissed on August 11, 2025.^[2]

HIGHLIGHTS

The issue: The case concerned the United States Court of Appeals for the Fifth Circuit's decision to issue and expand a nationwide. Click here to learn more about the case's background.

The questions presented: "1. Whether the court of appeals erred in holding that the Education Act does not permit the assessment of borrower defenses to repayment before default, in administrative proceedings, or on a group basis. 2. Whether the court of appeals erred in ordering the district court to enter preliminary

relief on a universal basis."^[3]

The outcome: The U.S. Supreme Court the case.^[2]

The case came on a writ of certiorari to the United States Court of Appeals for the Fifth Circuit. To review the lower court's opinion, click here.

Background

Case summary

The following are the parties to this case:^[2]

Petitioner: Department of Education, et al.
- Legal counsel: D. John Sauer (United States Solicitor General)
Respondent: Career Colleges and Schools of Texas
- Legal counsel: Stephen Blake Kinnaird (Paul Hastings LLP)

The following summary of the case was published by Oyez:

“

In November 2022, the Department of Education issued new regulations that significantly changed how student loan borrowers could get their loans discharged. The rules made it easier for borrowers to have their entire loans forgiven if they could show their school misled them, breached contracts, or engaged in aggressive recruitment. The rules also expanded situations where students could get loans discharged if their school closed. Career Colleges and Schools of Texas (CCST), an association of private postsecondary schools, challenged these regulations.

CCST sued to challenge two major aspects of the Department of Education’s 2022 Rule. First, CCST argued that the borrower defense provisions exceeded the Department's authority by creating new types of claims against the government and schools, and by establishing unauthorized adjudication procedures. Second, CCST challenged the closed school provisions as unlawful because they allowed students to get their loans discharged even without proving the school’s closure prevented them from completing their programs. The district court denied CCST’s motion for a preliminary injunction, finding that CCST had not shown it would suffer irreparable harm. On appeal, the U.S. Court of Appeal for the Fifth Circuit reversed the denial of a preliminary injunction and expanded the injunction to apply nationwide while the appeal continued.^[4]

”

To learn more about this case, see the following:

Timeline

The following timeline details key events in this case:

August 11, 2025: The U.S. Supreme Court dismissed the case.^[2]
June 23, 2025: Motion to resume the briefing granted.
February 6, 2025: Motion to pause the briefing granted.
January 10, 2025: The U.S. Supreme Court agreed to hear the case.
October 10, 2024: Department of Education appealed to the U.S. Supreme Court.
April 4, 2024: The United States Court of Appeals for the Fifth Circuit reversed the district court's judgment and remanded it to the lower court.

Questions presented

The petitioner presented the following questions to the court:^[3]

Questions presented:

“

1. Whether the court of appeals erred in holding that the Education Act does not permit the assessment of borrower defenses to repayment before default, in administrative proceedings, or on a group basis.2. Whether the court of appeals erred in ordering the district court to enter preliminary

relief on a universal basis.^[4]

”

Oral argument

The U.S. Supreme Court dismissed the case under Rule 46.1.^[2]

Outcome

The U.S. Supreme Court dismissed the case under Rule 46.1.^[2] According to the Rules of the Supreme Court of the United States, Rule 46.1 states:

“	At any stage of the proceedings, whenever all parties file with the Clerk an agreement in writing that a case be dismissed, specifying the terms for payment of costs, and pay to the Clerk any fees then due, the Clerk, without further reference to the Court, will enter an order of dismissal.^[4]	”
—Supreme Court of the United States^[5]

October term 2025-2026

See also: Supreme Court cases, October term 2025-2026

The Supreme Court began hearing cases for the term on October 6, 2025. The court's yearly term begins on the first Monday in October and lasts until the first Monday in October the following year. The court generally releases the majority of its decisions by mid-June.^[6]