CLASS Act of 2025
The Court Legal Access and Student Support Act of 2025 (CLASS Act of 2025) would stop enforcing mandatory arbitration for enrollment agreements between students and certain institutions of higher education. In other words, enrollment contracts could not be subject to Chapter 1 of Title 9 of the U.S. Code (which governs arbitration agreements). The bill also requires higher education institutions to refrain from placing any limits on a student’s ability to pursue legal claims in court, including limits on applicable law, jury trials, or venue. These changes would take effect one year after the bill becomes law. The overall aim is to preserve students’ access to court and prohibit forced arbitration in enrollment-related disputes with higher education institutions.
Key Points
- 1Exemption from arbitration: Chapter 1 of Title 9 (the FAA) would not apply to enrollment agreements between a student and an institution of higher education.
- 2Definitions: “Enrollment agreement” means a contract where a student commits financially to enroll in a study program; “institution of higher education” aligns with the Higher Education Act’s definition.
- 3Prohibition on limitations on pursuing claims: Amends the Higher Education Act to add a new requirement that institutions cannot require or enforce any limitation on a student’s ability to pursue a claim in court, including restrictions on applicable law, jury trial, or venue.
- 4Effective date: The changes would take effect one year after enactment.
- 5Scope: Applies specifically to enrollment agreements with institutions of higher education as defined by the Higher Education Act; does not appear to affect other types of contracts outside enrollment agreements.