Consumer complaint received 2022-05-17
Product: Student loan — Private student loan
Issue: Dealing with your lender or servicer — Received bad information about your loan
Company: Navient Solutions, LLC. (IL)

On XX/XX/XXXX, a class-action lawsuit was filed in the United States District Court for the XXXX XXXX of Michigan based in XXXX, seeking recoveries on behalf of thousands of adults in XXXX states harmed by the sudden closure of XXXX  schools in late XX/XX/XXXX. The plaintiffs counsel in the lawsuit is XXXX XXXX XXXX and XXXX XXXX XXXX of The XXXXXXXX XXXX  XXXX. 

On XX/XX/XXXX, a federal judge certified this case as a class action. 

On XX/XX/XXXX, a federal judge entered a judgment on behalf of all class members- more than XXXX persons - against XXXX. 

The lawsuit is being brought on behalf of adults who were enrolled in programs at XXXX schools in late XX/XX/XXXX when the owners and operators of the schools abruptly locked the doors without warning and without providing any refunds, as well as on behalf of those who are graduates and who were denied continuing, lifetime placement services from the now-closed schools. The lawsuit also includes individuals who co-signed or otherwise became liable for a loan to pay the XXXX XXXX tuition for these students. 

The closure of the XXXX  schools affected adults who enrolled in and paid for programs in Delaware, Georgia, Illinois, Indiana, Kansas, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Ohio, Pennsylvania, Virginia, and Wisconsin. 

The class-action lawsuit alleges that the owners and operators of the XXXX schools told students that by paying tuition costs as much as {$28000.00} or more for a six-month program, they would be able to participate in training through which they could become computer technicians with four XXXX certifications and after that receive continuing placement services from the schools in the field of information technology. 

Instead, the closure of the schools has left students who paid at least {$13000.00} in advance without the ability to complete the training programs or receive the continuing placement services at the XXXX schools as promised. The lawsuit alleges that the Defendants have failed to pay back a penny of the money taken from students. 

The lawsuit filed in federal court further alleges that the owners and operators of the XXXX schools were aware that their business was in dire financial trouble in XXXX. Still, they concealed these financial difficulties and the risk that they could not provide the program and placement services to the students enrolling in their programs. Instead, according to the lawsuit, the Defendants allegedly began an admissions push that included hiring numerous additional salespeople, increasing the compensation and commissions to such persons, slashing tuition at many schools, and enrolling as many students as possible. That lawsuit alleges that during the admissions push in late XXXX, Defendants knew or should have known that, due to XXXX financial trouble, the students they were enrolling in might not receive either the training program or the placement services which some were paying as much as {$28000.00}. According to the lawsuit, the Defendants also told students that they would receive full refunds if the school closed before they completed the program, then promptly locked the doors without giving any refunds. 

The XXXX XXXX, XXXX, which filed the lawsuit on behalf of the former XXXX students, is a law firm that aims to help those who are victims of unfair, deceptive, and abusive practices committed by for-profit schools and others. 

For-profit schools selling education to adults are big businesses in the United States XXXX With direct mail campaigns and through the newspaper, television, and Internet ads, these schools, institutes, and so-called " colleges '' frequently attempt to lure adults into expensive programs of study with promises of future employment in high-paying jobs or easy-to-obtain credentials, high school " diplomas '' or college " degrees. '' The owners and operators of these schools often make huge profits through tuition payments, typically paid with federal, state, or private loans obtained by or on behalf of the students. Many state and federal laws prohibit unfair and deceptive practices, and some rules also reward whistleblowers who report fraud committed against the government.