H.R. 3938: Court Legal Access and Student Support Act of 2025

This bill, known as the Court Legal Access and Student Support Act of 2025, proposes changes that primarily affect the relationship between students and institutions of higher education regarding the resolution of disputes. Below are the key provisions of the bill:

Inapplicability of Arbitration Agreements

The bill states that existing laws concerning the enforcement of arbitration agreements will not apply to enrollment agreements made between students and certain higher education institutions. This means that students cannot be compelled to resolve disputes through arbitration, which is often a private and less formal process compared to court. Instead, students will have the option to pursue legal claims in court if necessary.

Definitions

• Enrollment Agreement: This term refers to any contract between a student and a higher education institution where the student makes a financial commitment in exchange for enrollment in a study program.
• Institution of Higher Education: This term is defined as per the Higher Education Act of 1965, which generally includes colleges, universities, and other post-secondary educational institutions.

Prohibition on Limitations to Pursue Claims

The bill also amends existing education law to prohibit higher education institutions from imposing any limitations or restrictions on a student's ability to file a claim in court. Specifically, institutions:

• Cannot require students to agree to limitations that hinder their ability to pursue legal action.
• Cannot restrict students’ options regarding the choice of applicable law, whether they have a jury trial, or where a case can be filed.

Effective Date

The provisions detailed in this bill will take effect one year after it is enacted into law.

Relevant Companies

• None found