The Project on Predatory Student Lending

Representing students against the for-profit college industry

Statement on the COVID-19 Economic Stimulus Package and Student Loan Relief

The Senate COVID-19 stimulus bill includes measures intended to ease the burden of student loan debt for borrowers who are suffering during this economic crisis, but doesn’t go far enough, and will fail to help many former for-profit college students struggling with bogus debt.

My Student Loan Truth: Brandon Hurshman and Melissa Arroyo

"Education shouldn't be a business. It should be training to help build a life and contribute to society."

 

Student Advocates Challenge DeVos' Borrower Defense Rule

February 19, 2020

Fine Print of Stimulus Bill Contains Special Deals for Industries

New York Times – March 25, 2020

  1. The Project on Predatory Student Lending
  2. Statement on the COVID-19 Economic Stimulus Package and Student Loan Relief
  3. My Student Loan Truth: Brandon Hurshman and Melissa Arroyo
  4. Student Advocates Challenge DeVos' Borrower Defense Rule
  5. Fine Print of Stimulus Bill Contains Special Deals for Industries

About the Predatory For-Profit College Industry

For decades, the predatory for-profit college industry has exploited the promise of higher education. The industry specifically targets low-income students, people of color, immigrants, veterans, and others trying to build a better life for themselves, their families and their communities. Many are the first in their family to attend college. This industry draws nearly all its revenue from taxpayer dollars and relies on deceptive and relentless sales tactics to recruit students, leaving them worse off than they started. The Project’s landmark cases on behalf of student borrowers work to end these predatory practices and hold those who enable them accountable.

Featured Cases

Sweet v. DeVos

Challenges the Department of Education’s refusal to process borrower defense claims.

Villalba et al. v. ITT

Class action by former ITT Tech students in ITT’s bankruptcy proceedings. Students are the true creditors of ITT and debts from ITT are invalid.

Calvillo Manriquez v. DeVos

Class action challenging the federal government’s failure to discharge tens of thousands of student loans from Corinthian College discharge applicants whom the government already deemed entitled to discharges and the government’s decision to require some class members to pay a substantial portion of these fraudulent loans.

“Everything that the school promised, turned out to be false... Sanford-Brown Institute has left me and many other students with mountains of debt and no career path to dig ourselves out. Making this worse is that our own government has failed to step in to protect and help students.”

Yvette

“[The Department of Education] should be protecting the students, because students were led to believe they were protected. And they are not, they are protecting...for-profit schools."

Sarah

“I hope these rulings remind the Department of its obligation to its citizens who are the future of this country, and that it will start to act in the interest of students instead of for-profit institutions.”

-Meaghan, former student at New England Institute of Art 

News

Fine Print of Stimulus Bill Contains Special Deals for Industries | New York Times

Restaurants and retailers will get a tweak to federal tax law they have been seeking for more than a year that could save them $15 billion. Community banks are being granted their long-held wish of being freed to reduce the amount of capital they have to hold in reserve. And for-profit colleges will be able to keep federal loan money from students who drop out because of the coronavirus.

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Senate Passes Rebuke of DeVos Over Student Loan Forgiveness | ABC News

The Senate on Wednesday gave final congressional approval to a measure that would overturn rules issued by Education Secretary Betsy DeVos in 2019 that made it harder for students to get loans erased after being misled by for-profit colleges.

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Senate Rejects DeVos Rule Restricting Debt Relief for Bilked Students | New York Times

In a bipartisan rebuke, the Senate voted on Wednesday to overturn a major Trump administration rule that would sharply limit debt relief for students misled by schools that lured them in with false claims about their graduates’ career and earning prospects.

Read More

Get Help

If you attended a for-profit college and need legal help with student debt problems, contact us by leaving a message on our hotline, 617-390-2669, or filling out our online intake form.

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