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Project on Predatory Student Lending

Students Challenge Education Department’s Latest Scheme to Deny Student-Loan Relief | Press Release

Press Releases
Project on Predatory Student Lending

Florida For-Profit Colleges Sued for Selling Predatory Product and Targeting Black Students | Press Release

Press Releases
Project on Predatory Student Lending

Student Borrower Class Forces Department of Education to Process All Pending Borrower Defense Claims | Press Release

Update | ITT Students’ $1.5 Billion Settlement Heard by Judge In Bankruptcy

Today, former ITT students proposed a $1.5 billion settlement claim in bankruptcy court that would cancel more than $500 million in debts. All participants in the case and members of the class have until April 24 to submit their views of the settlement with the court before it is heard for final approval on June 13.  This is good news for former ITT students, but there is still a long way to go.

Bankruptcy Court Settlement Could Bring Relief to Some ITT Students | The Boston Globe

Thousands of students nationwide who attended the now-defunct ITT Technical Institute would have nearly $600 million in loans canceled under a proposed court settlement, a significant win for consumers in Massachusetts and elsewhere who have long claimed that the for-profit chain defrauded them out of money and an education.

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Update | Proposed Settlement to be Heard January 24

A year ago former ITT students filed a complaint against ITT and a class Proof of Claim in the ITT bankruptcy case. In this last year we have worked hard to fight on behalf of the Student Class, including urging the Trustee to stop collection on all debt owed directly to ITT.

Duped into Paying for Worthless Degrees, these Former For-Profit College Students Could Get Their Money Back | MarketWatch

Former students of a for-profit college who say they were duped into paying for worthless degrees could get some of their money back, thanks to a recent motion in the now-defunct school’s bankruptcy case.

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These Students are Suing Their For-Profit School | Vice

For-profit colleges and universities have received increased scrutiny in recent years for their part in helping to drive up the level of U.S. student debt, which now tops $1.3 trillion, according to the Federal Reserve Bank of New York.

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Update | ITT Trustee to Stop Collection on All “Temporary Credit” Accounts

On May 18, the court overseeing ITT’s bankruptcy case approved a motion to stop collection on all ITT “Temporary Credits.” ITT used unfair and deceptive tactics to get students to sign up for Temporary Credits, including by describing Temporary Credits as grants and threatening to expel students if they did not agree to the debt. Even after ITT filed for bankruptcy, its servicers and debt collectors continued to harass students to collect these Temporary Credits.

In EDMC Sale, Ties to For-Profit Education to Face Scrutiny | Pittsburgh Post-Gazette

Last year, an “extremely enthusiastic” charitable nonprofit foundation based in India approached Education Management Corp. with an offer.

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Update | Project on Predatory Student Lending Statement on Proposed Sale of EDMC to Dream Center Foundation

EDMC’s conversion to nonprofit status raises critical questions, including how the corporation intends to ensure positive student outcomes once it is no longer subject to gainful employment regulations.

Law School Group Sues Federal Government | The Harvard Crimson

Harvard Law School’s Project on Predatory Student Lending has sued the federal government in an effort to access documents from the Education Management Corporation, an operator of for-profit colleges that settled a case with the U.S. Department of Justice in November 2015.

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Update | Project on Predatory Student Lending Sues Federal Government For Withholding For-Profit College Corporation’s Recruitment Records

On February 14, the Project on Predatory Student Lending of the Legal Services Center of Harvard Law School filed a Freedom of Information Act (FOIA) lawsuit, challenging the government’s refusal to provide documents shedding light on for-profit college giant Education Management Corporation (EDMC)’s recruitment practices.