Students win right to sue colleges in court, not forced arbitration
H.R. 3938 — CLASS Act of 2025 · Filed by Maxine Waters (D-CA) · 12 cosponsors · Introduced Jun 11, 2025 · Referred to committee
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What it does
This bill prohibits colleges and universities from requiring students to sign arbitration agreements that would force disputes into private arbitration instead of court. It also bars colleges from imposing other restrictions on students' legal rights, such as limiting jury trials, choice of law, or venue. Students would retain the right to sue their institution in court, individually or collectively.
Why we flagged it
The bill's operative mechanism is to strip colleges of the power to force arbitration on students and to prohibit other restrictions on legal remedies. It is a consumer/student protection measure that restores access to courts.
What the text implies
- Colleges may face increased litigation exposure and higher legal costs, potentially passed to students through tuition increases or reduced institutional spending on other services.
- Arbitration clauses in enrollment agreements become unenforceable retroactively (1 year after enactment), creating potential disputes over existing student contracts signed under prior law.
The full analysis lists 3 implications of this text.
Who stands to gain
plaintiff's attorneys (increased litigation volume); students (restored court access and collective action rights)