Referred to the Committee on Education and Workforce, and in addition to the Committee on the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
The CLASS Act of 2025 prohibits colleges and universities from requiring students to sign arbitration agreements as a condition of enrollment. Currently, many institutions include clauses in enrollment contracts that force students to resolve disputes through private arbitration rather than in court; this bill eliminates that practice by making federal arbitration laws inapplicable to student enrollment agreements. The legislation also amends the Higher Education Act to require that institutions receiving federal funding cannot enforce any restrictions on students' ability to sue them in court, including limitations on jury trials or venue choice. The bill applies to all institutions of higher education covered under the Higher Education Act of 1965. The law takes effect one year after enactment, giving institutions time to update their enrollment agreements and policies.
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