In 2016, the Project launched a first of its kind legal fight against the predatory for-profit college industry and the harm they cause to students and communities.
During that time, the Project has grown to represent more than one million borrowers and its litigation has directly resulted in the cancellation of over $2.5 billion in fraudulent student debts.
When the Project began this work, the for-profit college industry was still growing and thriving, operating on government money and to the detriment of students. It faced little accountability for targeting people and communities of color, low-income people, veterans, and first-generation college students. The industry was making a fortune by promising the world and delivering debilitating debt. In many cases, it was difficult or impossible for cheated students to get any recourse—neither against predatory for-profit colleges nor against the federal government.
The Project’s landmark litigation – and our clients’ willingness to stand up for themselves and others in court – has in five years changed the landscape of how these schools operate and their ability to cheat students.
5 year impact video
Our partners and clients are leading this fight. Some of them weighed in on the past five years of the Project’s work.
By The Numbers
Landmark Legal Victories
For 750,000 former ITT students in the school’s bankruptcy, winning the cancellation of $500 million in ITT debt and a $1.5 billion claim against the bankruptcy estate, and the immediate return of $3 million to students. (Villalba v. ITT)
Forcing the Department to enact the illegally-delayed 2016 borrower defense rule, which resulted in cancellation of over $250 million of federal student loans through the automatic closed school discharge provision. This litigation victory also forced into effect the federal rule restricting federally-funded schools’ use of forced arbitration. (Bauer v. DeVos)
Forcing the Department to stop seizing tax refunds from borrowers who had applied for borrower defense and forcing the Department to consider borrower defense applications filed by state attorneys general. (Williams v. King)
Winning court-ordered cancellation of the federal student loan debt of all 7,200 former Corinthian students in Massachusetts: the first time a court has ever ordered borrower defense discharge of federal student loans. (Vara v. DeVos)
Enjoining the first (2017) “partial relief” rule from being applied to borrower defense applicants, and leading then-Secretary Betsy DeVos to be held in contempt of court for violating that injunction by collecting federal student loan debts from tens of thousands of former Corinthian students. (Calvillo Manriquez v. Cardona)
Challenging the Department’s second (2019) unlawful “partial relief” scheme attempt, stopping the harmful policy from being effectuated. The ultimate end of these two unlawful policies will lead to $1 billion in loan cancellation for over 72,000 Corinthian and ITT borrowers. (Pratt v. DeVos, Calvillo Manriquez v. Cardona)
Holding the government accountable for its failed borrower defense system by representing over 170,000 defrauded students who applied for borrower defense cancellation. For over 5 years, borrowers were ignored, and then subjected to a sham process that the Department designed to deny borrowers’ claims, regardless of evidence – a rigged process that was uncovered through the Project’s litigation. (Sweet v. Cardona)
"I believe the work that is being done by the Project on Predatory Student Lending has helped bring light to a very dark corner of our education system. On a more personal level, the Project has given me the courage to speak about this issue. There can be a lot of fear and shame associated with being victims of education fraud. But the Project’s work has helped show me, and millions of other students who were cheated, that there is nothing to be ashamed of and that if we speak up and stand together we can make a difference.”
- Theresa Sweet, the lead plaintiff in the case Sweet v. Cardona.
