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.
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.
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.
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.
Update | January 30th ITT Bankruptcy Hearing
On Monday, January 30, the judge in ITT’s bankruptcy granted former ITT students’ request that they be recognized as having filed a group claim despite the trustee’s objection, and recognized the Legal Services Center of Harvard Law School as students’ counsel for this initial stage of their case.
Update | New York Times Calls Former ITT Students’ Legal Action ‘Gratifying’
“It seems only right that victims of predatory for-profit education companies should have their student loans forgiven,” the article begins. It goes on to discuss the validity of students’ claims, their difficulty in getting debt relief, and the thousand of pages of “powerful testimony” submitted with the students’ complaint. As the article explains, the evidence shows “a pattern of practice that dispels any notion that bad behavior harmed just a handful of ITT students.”