Student borrowers are keeping the pressure up in 2022 | Blog

March 16, 2022

In just three months of 2022, we’ve seen notable progress in the fight towards holding predatory for-profit colleges and those who enable them accountable. From a scathing report detailing ITT’s decades of wrongdoing, to students in Sweet v. Cardona calling out the growing borrower defense backlog, borrowers are not letting up and keeping the pressure on the Education Department’s arbitrarily long and winding road to justice.

Proof of ITT’s Massive-Scale Fraud and Abuse

Biden Administration’s Borrower Defense Backlog Grows

Navient Settlement is Too Good to Be True

  • In February, Massachusetts Attorney General Maura Healey, joined by a coalition of 38 attorneys general, announced a settlement with private student loan lender Navient, providing relief totaling $1.85 billion to resolve allegations of widespread unfair and deceptive student loan servicing practices and abuses in originating predatory student loans.
  • However, the details of the settlement reveal that only about 66,000 borrowerswho have defaulted on their loans are getting relief and the borrowers who have sacrificed their well-being to make their payments on time have to keep doing so. Learn more about what this settlement actually means for borrowers in this New York Times article: The $1.7 Billion Student Loan Deal That Was Too Good to Be True.
  • In March, Project members hosted a webinar with over 100 borrowers to answer questions about the Navient settlement, gather information, and consider additional action.

Borrowers Continue to Speak Up During Negotiated Rulemaking

  • Defrauded for-profit college students continue to show up and demand accountability at the Department of Education’s Negotiated Rulemaking sessions. Several of our clients joined the public comment periods to share their for-profit college experiences. One common theme this past session: the lack of gainful employment for for-profit graduates.
  • Sergio Solorza shared his University of Phoenix experience and called for the Department to act now to right the wrongs he’s endured. When students couldn’t get into the sessions, we made sure their stories were still heard in front of the committee.
  • Eileen Connor gave public comment, warning the committee of the perils of weak regulations and lack of enforcement. Watch the video here.