Court Legal Access and Student Support Act of 2025
The Court Legal Access and Student Support Act of 2025 (CLASS Act) would largely strip away the enforceability of arbitration for disputes arising from enrollment agreements between students and certain institutions of higher education. Specifically, it would make Chapter 1 of Title 9 of the United States Code (the Federal Arbitration Act’s enforcement provisions) inapplicable to enrollment agreements, meaning those agreements could not compel students to arbitrate disputes rather than go to court. In addition, the Act would prohibit institutions from imposing or enforcing any limitations on a student’s ability to pursue claims in court, including restrictions on applicable law, jury trials, or venue. The bill also adds a new anti-restriction provision to the Higher Education Act, and it takes effect one year after enactment. Potential impacts include greater access to court remedies for students, possible increases in litigation against higher education institutions, and significant changes to how enrollment agreements are drafted and enforced. Institutions would need to revise enrollment contracts and risk-management practices to ensure compliance with the new restrictions.
Key Points
- 1Carves out enrollment agreements from the enforcement provisions of the Federal Arbitration Act (Chapter 1 of Title 9), so arbitration clauses in those agreements would not be enforceable against students.
- 2Defines “enrollment agreement” and “institution of higher education” for the purposes of this act.
- 3Amends the Higher Education Act of 1965 to prohibit institutions from requiring or enforcing any limitation on a student’s ability to pursue a claim in court, including limitations on applicable law, jury trial, or venue.
- 4Establishes a one-year effective date after enactment for the Act and amendments.
- 5Provides a short title: “Court Legal Access and Student Support Act of 2025” or “CLASS Act of 2025.”