Easy Guide to Getting Your Money Back if Your For-Profit College Tricked You
Published: 2023-05-24 22:01:11

Paying for college in the United States is getting more expensive. This is a big problem, especially for students who went to for-profit colleges. Some of these colleges have been taken to court for lying to and cheating their students. This has left many students with a lot of student loan debt for degrees that don't help them get jobs.

To help these students, the U.S. Department of Education has made programs to forgive their loans.

This article will talk about how students can get their loans forgiven. We will focus on borrower defense settlements and talk about the for-profit colleges that have been taken to court recently.

Borrower Defense to Repayment
The main way for students who were tricked by their colleges to get their loans forgiven is the Borrower Defense to Repayment. This program was started by President Obama. It lets students who were lied to by their school or whose school broke certain laws ask for their loans to be forgiven. Students can send a claim to the Department of Education explaining how their school tricked them.

If the claim is approved, the student might not have to pay all or part of their loan, and they might get back money they already paid. President Trump made rules that made it harder for students to get their loans forgiven, but President Biden got rid of these rules and brought back the original ones. This means many students who were denied before can now ask again.

For-Profit Colleges and Court Cases
The problem of for-profit colleges lying to students has been in the news a lot recently because of court cases against some of the biggest for-profit colleges. For example, ITT Technical Institute and Corinthian Colleges were taken to court for tricking students and lying about how many of their students got jobs. These schools were closed, and their students can now ask for their loans to be forgiven through the Closed School Discharge program.

Recently, the Art Institutes, a group of for-profit art schools, was taken to court for similar reasons. The school was accused of lying about its accreditation status, job placement rates, and whether credits could be transferred. After a settlement, the students who were tricked by the Art Institutes can now ask for their loans to be forgiven through the Borrower Defense to Repayment program.

List of Schools Where Students Can Ask for Loan Forgiveness
There are more than 155 schools where students might be able to get their loans forgiven. The most recent case is the proposed settlement of Sweet v. Cardona. But it's important to know that the name of the school's "owner" might not be the same as the name of the school. Right now, people are working to make a list of these schools.

Please Note: Not all students from all schools can get their loans forgiven. They have to meet certain rules to qualify. But there are some schools where all students might be able to get their loans forgiven.

For example, Corinthian Colleges reached a settlement, but the actual school names include Everest, WyoTech, and others. So, students might not know if they can ask for their loans to be forgiven.

In the list below, we will give the name of the parent company and the schools it owns. It's important to know that some of these schools used to be for-profit but are now non-profit.

Looking Ahead
It’s important for all students, particularly those attending for-profit colleges, to be aware of these loan forgiveness options. The Borrower Defense to Repayment program provides a lifeline for those who have been misled or defrauded by their schools. However, the process can be complex and often requires legal assistance.

While the Department of Education continues to work on simplifying the application process, it’s advised that students or graduates considering this path seek guidance from knowledgeable sources, such as legal aid organizations or student loan ombudsman resources.

Finally, prospective students are urged to conduct thorough research before enrolling in a for-profit institution. Understanding the school’s accreditation, job placement rates, and other pertinent information can help prevent future financial and educational hardships.

As the landscape of higher education and student loan debt continues to evolve, the fight for justice and financial relief for defrauded students goes on. The recent lawsuits and settlements signal a step in the right direction, holding educational institutions accountable and providing a pathway to financial recovery for those affected.

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