News

Updates

Project on Predatory Student Lending Hiring a Racial Justice Fellow

The Project on Predatory Student Lending is excited to announce a one-year fellowship! The racial justice fellow will develop cutting-edge litigation to combat the discriminatory efforts of current higher education policies, and lead outreach efforts by engaging with existing clients and community partners and forging new partnerships with communities impacted by the predatory for-profit industry. For…

Update | When Student Debt is Not Only Predatory, But Racist

Predatory colleges exploit the promise of higher education by targeting African Americans and people of color with lies and deceptive marketing tactics. An ad used to run on daytime TV: a young woman of color is talking about how she “has a young child” and needs to “hold down the household.” But this didn’t stop…

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.

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.

Update | Department of Education Illegally Slashes Debt Relief for Corinthian Borrowers

Martin was talked into WyoTech’s automotive technology program instead of community college. But the program was a complete fraud – he rarely touched a car while there, and the great jobs promised to him were unavailable.

Update | Former For-Profit College Students Ask Federal Court to Void Student Loan Debt

Yesterday, Tina Carr and Yvette Colon, two former defrauded students of the for-profit Sanford-Brown Institute in New York, sued the Department of Education (Department) and Navient to block the enforcement of their student loan debt. They sued because of the Department’s failure to act on thousands of borrower defense applications by former students whose debts it has…

Update | In a Second Rebuke to Department of Education, Federal Court Refuses to Relinquish Case of Corinthian Borrower

In its latest ruling on October 31, 2017, the United States District Court for the Central District of California demanded that the Department of Education respond to the allegations of Sarah Dieffenbacher, a mother of four who was defrauded by Everest, a Corinthian Campus in California.

Update | AP Story Quotes LSC Attorney on Delay in Cancelling Predatory For-Profit College Loans

Tens of thousands of former students who say they were swindled by for-profit colleges are being left in limbo as the Trump administration delays action on requests for loan forgiveness, according to court documents obtained by The Associated Press.

Update | LSC’s Project on Predatory Student Lending and Public Citizen Sue to Stop Education Department’s Illegal Regulatory Delay

The U.S. Department of Education broke the law when it announced a delay of a rule designed to protect students defrauded by predatory for-profit colleges and career training programs, two borrowers said in a lawsuit filed today in the U.S. District Court for the District of Columbia.

Update | Court Orders Department of Education to Consider Student Loan Relief Application, Calling Request for Further Delay “Frivolous and in Bad Faith”

The United States District Court for the Central District of California issued an Order today that directs the Department of Education to rule on the loan relief application of a former Corinthian student that has been pending for over two years.  To date, the Department of Education has not ruled on thousands of applications for loan relief submitted by borrowers whose federal student loans were originated by private banks under the Federal Family Education Loan Program.