Update for Sweet v. DeVos Class Members
The October 1 hearing will not be held in person but will proceed by telephone. You should consult the website for the United States District Court for the Northern District of California, https://www.cand.uscourts.gov/, for specific directions on how to attend and comment on the proposed settlement by phone.
Sweet v. DeVos
Information for Class Members
To learn if you are a member of the class, and to find out more information for class members, click the link below.
Who Is Involved In This Case?
Named Plaintiffs brought this lawsuit in June 2019 on behalf of themselves and all other former students whose claims for loan cancellation have stalled. Immediately after filing the lawsuit, the students asked the court to let them represent all the students, with a motion for class certification. The motion included more than 900 affidavits from students describing the harm that the Department’s inaction has caused – with 96% saying their lives were worse than before they attended school. In October 2019, the court certified the class of over 200,000 borrowers with pending claims.
What Is This Case About?
Over the past several decades, millions of students borrowed federal student loans to attend various for-profit colleges, including ITT Technical Institute, Corinthian Colleges, the Art Institutes, Salter College, Brooks Institute of Photography, and more. The schools falsely promised students high-paying jobs, state-of-the-art vocational training, and long and fulfilling careers.
Between 2015 and 2019, over 200,000 of these former students have asserted their right under federal law to discharge their federal student loans due to their schools’ misconduct. As it was legally obligated to do, the Department of Education started to adjudicate these borrower defenses, approving nearly 28,000 borrower defenses in the six-month period before January 20, 2017.
Then, under Secretary DeVos, the Department of Education halted all processing of borrower defense claims, refused to adjudicate any borrower defense from any student for well over a year, and ordered the office of Federal Student Aid to stop processing borrower defense applications. As of 2019, more than 200,000 students had a borrower defense pending, many of them have been unresolved for over four years.
The Department of Education’s decision to keep these students in limbo has further destroyed students’ credit and limited their access to federal student aid. For students who have defaulted on their loans, the Department of Education has invoked its extraordinary powers to garnish their wages or seize their tax refunds (for many, their Earned Income Tax Credit).
With this lawsuit, the plaintiffs are demanding that the Department do its job and start adjudicating their borrower defenses immediately.
Where Was This Case Filed?
The case was filed in the United States District Court for the Northern District of California in the San Francisco Bay Area.
When Was This Case Filed?
This case was filed on Tuesday, June 25, 2019.
Why this case?
The law is clear: students who experienced fraud should not be required to pay back federal loans that should never have been made by the Department in the first place. Since Betsy DeVos continues to ignore these students’ legal rights, the only way they can have their voices heard is through the courts.
This lawsuit builds on past legal efforts to hold the Department of Education accountable and stand up for students through court action, which has become one of the only ways for defrauded students to assert their rights. In the case of Williams v. King, students fought back against having their tax refunds stolen by the Department of Education, and won. In the case of Calvillo Manriquez v. DeVos, students preliminarily stopped the Department from limiting the relief it provided to students who it had already decided were entitled to full relief. And in Bauer v. DeVos, a judge forced the Department of Education to implement the 2016 Borrower Defense rule. In August 2019, Secretary DeVos issued a new borrower defense rule imposing near-impossible standards for student borrowers. in February 2020, the Project challenged the new rule in court.
To read statements in support of our case, click below.
To read testimony submitted by defrauded former for-profit college students, click below.
“This has put my whole life on hold. I can’t sign for home, a car, anything because I don’t know what’s going to happen to this debt. It’s extremely stressful and impacts my whole family. It’s beyond disappointing. The Department of Education did nothing to stop these schools from doing this in the first place and now they are ignoring those of us who were cheated on their watch."
Jessica Jacobson, former NEIA student
"Students defrauded by for-profit colleges should not face financial ruin armed with only a hollow degree blessed by a passive Education Department. If Secretary DeVos believes there’s no urgency in granting these students the relief they are entitled to, then our legal system must fill the void. Every single day that this financial burden rests on students’ shoulders is another day of justice deferred."
Congressman Joe Kennedy III
Defrauded Student Borrowers Tell Court: Dept. is Acting in Bad Faith, Breaching Settlement in Denials of Borrower Defense Claims | Press Release
Student borrowers filed a motion asking for final approval of a settlement that forces the Department to process all pending borrower defense claims, while also asking the judge to enforce the terms of the settlement. The borrowers argue that the Department has already breached the settlement agreement, finalized in April, by issuing cursory, blanket denials of nearly all of the borrower defense claims it has decided.
Update | Borrowers Raise Concern over Borrower Defense Denials
On August 31, 2020, the court overseeing the Sweet v. DeVos class action held a hearing on the Department of Education’s recent wave of borrower defense denials. The borrowers who brought the case had requested a hearing the week before. At the hearing, the borrowers shared their concerns with the judge that the Department of…
Student Borrower Class Forces Department of Education to Process All Pending Borrower Defense Claims | Press Release
Education Secretary Betsy DeVos and the United States Department of Education promise to process the borrower defense claims of nearly 170,000 student borrowers, many of which have been pending for more than four years. This long-awaited processing would come as the result of a settlement proposed in the class action lawsuit Sweet v. DeVos.
Joint Motion for Preliminary Settlement Approval
On April 10, 2020, both parties filed a motion for preliminary approval of a settlement agreement.
Order Granting Sweet Class Certification
Order Granting Motion For Class Certification
Motion for Class Certification, Part 1
On July 23, 2019, Plaintiffs filed a motion for class certification, including almost 900 affidavits from class members.
So Deep in Student Debt, They’re Suing Betsy DeVos Over Delays in Loan Forgiveness | CBS News
Alicia Davis feels like she was scammed. As a student at Florida Metropolitan University from 2006 to 2008, she said she was told the cost of her online criminal justice program would be covered by Pell grants and scholarships. She was told her credits could be transferred to other schools. Graduating from the school, a subsidiary of the for-profit Corinthian Colleges, would lead to a job and a decent wage.
At the US Education Department, Applications for Loan Forgiveness Languish | CNBC
When Morgan Marler’s 5-year-old daughter, Lilian, asks her why she doesn’t work anymore, Marler doesn’t know what to say. “I can’t explain debt to her,” Marler, 29, said. “And how I went to school and it was all for nothing.” Marler attended ITT Technical Institute, a now-shuttered for-profit school, between 2013 and 2016.
Inside Higher Ed
Education Department to Resolve Borrower-Defense Case | Inside Higher Ed
The Education Department agreed to process 170,000 claims by student loan borrowers who want their debts canceled because they were misled by their colleges under a settlement jointly proposed by the department and a consumer group.