Case 21-888, Document 49, 07/28/2021, 3146569, Page1 of 32 In the United States Court of Appeals for the Second Circuit New York Legal Assistance Group, Plaintiff-Appellant, v. Miguel A. Cardona, in His Official Capacity as Secretary of Education, and United States Department of Education, Defendants-Appellees. On Appeal from the United States District Court for the Southern District of New York BRIEF OF MASSACHUSETTS, CALIFORNIA, CONNECTICUT, DELAWARE, THE DISTRICT OF COLUMBIA, HAWAII, ILLINOIS, MAINE, MARYLAND, MICHIGAN, MINNESOTA, NEW JERSEY, NEW MEXICO, NEW YORK, NORTH CAROLINA, OREGON, PENNSYLVANIA, RHODE ISLAND, VERMONT, VIRGINIA, WASHINGTON, AND WISCONSIN AS AMICI CURIAE IN SUPPORT OF PLAINTIFF-APPELLANT MAURA HEALEY ROB BONTA Attorney General of Massachusetts Attorney General of California Yael Shavit Nicklas A. Akers Miranda Cover Senior Assistant Attorney General Max Weinstein Bernard A. Eskandari Assistant Attorneys General Supervising Deputy Attorney General One Ashburton Place 455 Golden Gate Avenue Boston, MA 02108 San Francisco, CA 94102 (617) 963-2197 (415) 510-3364
[email protected] [email protected] Attorneys for Amicus Curiae the Attorneys for Amicus Curiae the State Commonwealth of Massachusetts of California (Additional counsel listed on signature page) Case 21-888, Document 49, 07/28/2021, 3146569, Page2 of 32 TABLE OF CONTENTS Page Introduction and Statement of Interest .......................................................... 1 Argument ....................................................................................................... 5 The 2019 Borrower Defense Rule Is Not the Product of Lawful Agency Decisionmaking ........................................................... 5 A. ED Irrationally Adopted an Insurmountable Standard of Proof that Functions as an Effective Bar to Relief for Victimized Borrowers ......................... 7 B. ED Ignored Substantial Record Evidence and Failed to Explain Its Change of Position When It Rescinded the Group Discharge Process .....................