About the For Profit Colleges Collective

This is the place to talk about all things related to the borrower defense to repayment (DTR) process.

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I’m a retired registered nurse on social security. I can no longer afford University of Phoenix student loan repayment. How do I begin?

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I have a Loan with them also. I am unable to make the regular payment so I applied for an IBR but the loan amount doesn’t seem to go down…

I attended a for profit school in CT called Briarwood College which was bought by Lincoln Education. I attended for 3 semesters and withdrew because of, at the time ongoing, alcohol addiction (sober 5 years now). I have 5 loans in default being services by the Department of Education. The total with interest is around $12,000. After all of the things I have been through I feel responsible to repay, my default setting at this point in my life is that I put myself in this mess by drinking for 10years and if I have to spend that long getting back on track I guess I deserve it. That being said I am trying to change my thinking and accept that I need help and that’s why I am here!

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Hi @Jack_Moriarty, sending you all the love and support possible as you deal with alcohol addiction.

For-profit universities shouldn’t exist, and neither should student debt of any kind. If you haven’t already filed a borrower defense to repayment I recommend you do so here:
https://borrowerdischarge.ed.gov/s/?language=en_US

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Thanks for kind wishes and information! My addiction is one part of my life I feel I have control of at this time! I have a question regarding borrower discharge is that all of this happened a while ago (09?) Because of that and my drinking at the time I have little documentation (although I have some) and little memory as to what was said or promised to me. Can I still have success with this process?

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Congratulations on your 5 years of sobriety. Staying sober will help you fight this battle to end your Student loan debt, and hopefully you can help someone else. I want to tell you you are not alone. My story is similar to yours except I attended a for profit career school in 1989. People are talking about being misled by schools they attended, struggling to pay back student loans because of the interest, and some people owing money for schools that offered credits that couldn’t be transferred to most Colleges. I now realize this was going on way back in the 80’s and 90’s, but nobody noticed or talked about it back then. I wish I knew then what I know now, because I would have used the borrower defense law that was created in the 90’s a few years after I attended a school whose name no longer exist anywhere, because it has changed its name so many times over the years. It became Kaplan Career Institute, that is being sued for deceptive practices, and Britewood Career School, that closed their doors in 2018 because their accreditation was revoked. I joined this group 4 days ago, and I’m learning so much and I hope you learn a lot too. Hopefully everyone can get their loans discharged.

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I received this letter after applying for the borrower-defense fund. I provided as much proof a possible however most of the communication was no longer available on the University of Phoenix student site. I don’t know what to do to resolve this issue and receive relief from the debt that I occurred due to their lies.

Below is the Letter that I received.

6/12/2020

Borrower Defense Application #: 02119181

Dear Carolyn Griffin:

The U.S. Department of Education (ED) has completed its review of your application under the applicable Borrower Defense to Repayment regulations for discharge of your William D. Ford Federal Direct Loans (Direct Loans) made in connection with your or your child’s enrollment at University of Phoenix. “You” as used here should be read to include your child if you are a Direct PLUS Loan borrower who requested a discharge for loans taken out to pay for a child’s enrollment at University of Phoenix. ED has determined that your application is ineligible for relief based on review of the facts of your claim and the regulatory criteria for relief; this decision means that your Direct Loans will not be discharged. ED explains the reasons below.

Applicable Law

For Direct Loans first disbursed prior to July 1, 2017, a borrower may be eligible for a discharge (forgiveness) of part or all of one or more Direct Loans if the borrower’s school engaged in acts or omissions that would give rise to a cause of action against the school under applicable state law. See § 455(h) of the Higher Education Act of 1965, as amended, 20 U.S.C. § 1087e(h), and 34 C.F.R. § 685.206© and 685.222 (the Borrower Defense regulations). ED recognizes a borrower’s defense to repayment of a Direct Loan only if the cause of action directly relates to the Direct Loan or to the school’s provision of educational services for which the Direct Loan was provided. 34 C.F.R. §§685.206©(1), 685.222(a)(5); U.S. Department of Education, Notice of Interpretation, 60 Fed. Reg. 37,769 (Jul. 21, 1995).

Why was my application determined to be ineligible?

ED reviewed your borrower defense claims based on any evidence submitted by you in support of your application, your loan data from National Student Loan Data System (NSLDS®), and evidence provided by other borrowers.

Allegation 1: Employment Prospects

You allege that University of Phoenix engaged in misconduct related to Employment Prospects. This allegation fails for the following reason(s): Insufficient Evidence.

Your claim for relief on this basis therefore is denied.

Allegation 2: Program Cost and Nature of Loans

You allege that University of Phoenix engaged in misconduct related to Program Cost and Nature of Loans. This allegation fails for the following reason(s): Insufficient Evidence.

Your claim for relief on this basis therefore is denied.

Allegation 3: Transferring Credits

You allege that University of Phoenix engaged in misconduct related to Transferring Credits. This allegation fails for the following reason(s): Insufficient Evidence.

Your claim for relief on this basis therefore is denied.

Allegation 4: Admissions and Urgency to Enroll

You allege that University of Phoenix engaged in misconduct related to Admissions and Urgency to Enroll. This allegation fails for the following reason(s): Failure to State a Legal Claim.

Your claim for relief on this basis therefore is denied.

Allegation 5: Educational Services

You allege that University of Phoenix engaged in misconduct related to Educational Services. This allegation fails for the following reason(s): Failure to State a Legal Claim.

Your claim for relief on this basis therefore is denied.

Allegation 6: Career Services

You allege that University of Phoenix engaged in misconduct related to Career Services. This allegation fails for the following reason(s):Insufficient Evidence .

Your claim for relief on this basis therefore is denied.

Allegation 7: Other

You allege that University of Phoenix engaged in misconduct related to Other. This allegation fails for the following reason(s): Failure to State a Legal Claim.

Your claim for relief on this basis therefore is denied.

What evidence was considered in determining my application’s ineligibility?

We reviewed evidence provided by you and other borrowers who attended your school. Additionally, we considered evidence gathered from the following sources:

Federal Trade Commission (FTC)
IA Attorney General’s Office
Evidence obtained by the Department in conjunction with its regular oversight activities
Publicly available records relating to US ex rel. Green v. Univ. of Phoenix, No. 14 001654 (N.D. Oh. Apr. 29, 2019)
Materials compiled by non-profit group, Veterans Education Success (VES)
Publicly available securities filings made by University of Phoenix’s parent company, Apollo Education Group

What if I do not agree with this decision?

If you disagree with this decision, you may ask ED to reconsider your application. To submit a request for reconsideration, please send an email with the subject line “Request for Reconsideration [ ref:_00Dt0Gyiq._500t0RmY3e:ref ]” to BorrowerDefense@ed.gov or mail your request to U.S. Department of Education, P.O. Box 1854, Monticello, KY 42633. In your Request for Reconsideration, please provide the following information:

Which allegation(s) you believe that ED incorrectly decided;Why you believe that ED incorrectly decided your borrower defense to repayment application; andIdentify and provide any evidence that demonstrates why ED should approve your borrower defense to repayment claim under the applicable law set forth above.

ED will not accept any Request for Reconsideration that includes new allegations. If you wish to assert allegations that were not included in your application, please see the following section. Additionally, your loans will not be placed into forbearance unless your request for reconsideration is accepted and your case is reopened. Failure to begin or resume repayment will result in collection activity, including administrative wage garnishment, offset of state and federal payments you may be owed, and litigation. For more information about the reconsideration process, please contact our borrower defense hotline at 1-855-279-6207 from 8 a.m. to 8 p.m. Eastern time (ET) on Monday through Friday.

Can I apply for borrower defense if I have additional claims?

If you wish to file a new application regarding acts or omissions by the school other than those described in borrower defense application [Case Number], please submit an application at StudentAid.gov/borrower-defense. In the new application, you should explain in the relevant section(s) the basis for any new borrower defense claim(s) and submit all supporting evidence.

What should I do now?

Because your borrower defense to repayment application was found to be ineligible, you are responsible for repayment of your loans. ED will notify your servicer(s) of the decision on your borrower defense to repayment application within the next 15 calendar days, and your servicer will contact you within the next 30 to 60 calendar days to inform you of your loan balance. Further, if any loan balance remains, the loans will return to their status prior to the submission of your application. If your loans were in forbearance as a result of your borrower defense to repayment application, the servicer will remove those loans from forbearance. *See COVID-19 Note below.

If your loans are in default and are currently in stopped collections, your loans will be removed from stopped collections. Failure to begin or resume repayment could result in collection activity such as administrative wage garnishment, offset of state and federal payments that you may be owed, and litigation. *See COVID-19 Note below.

While normally interest would not be waived for unsuccessful borrower defense applications, given the extended period of time it took ED to complete the review of this application, the Secretary is waiving any interest that accrued on your Direct Loans from the date of the filing of your borrower defense application to the date of this notification. Your servicer will provide additional information in the coming months regarding the specific amount of interest adjusted. *See COVID-19 Note below.

*COVID-19 Note: On March 27, 2020, the president signed the CARES Act, which, among other things, provides broad relief in response to the coronavirus disease 2019 (COVID-19) for federal student loan borrowers whose loans are owned by ED. For the period March 13, 2020, through September 30, 2020, the interest rate on the loans will be 0% and no payments will be required. During this same period for defaulted borrowers, all proactive collection activities, wage garnishments, and Treasury offsets will be stopped. Your federal loan servicer will answer any questions you have about your specific situation. In addition, Federal Student Aid’s COVID-19 information page for students, borrowers, and parents is located at StudentAid.gov/coronavirus. Please visit the page regularly for updates.

What if I have another pending borrower defense application?

If you have additional pending borrower defense to repayment applications, this information applies to you:

If your loans associated with an additional borrower defense to repayment application that is still pending are in forbearance or another status that does not require you to make payments, your loans will remain in forbearance or that other status. Similarly, if your loans associated with that borrower defense application are in default and you are currently in stopped collections, those loans will remain in stopped collections.If you are unsure if you have additional pending applications, or if you would like to check on the status of your loans associated with an additional application, contact our borrower defense hotline at 1-855-279-6207 from 8 a.m. to 8 p.m. ET on Monday through Friday.

ED offers a variety of loan repayment options, including the standard 10-year repayment plan, as well as extended repayment, graduated repayment, and income-driven repayment plans. For more information about student loan repayment options, visit StudentAid.gov/plans. If you have questions about the status of your loans or questions about repayment options, please contact your servicer(s). If you do not know the name of your federal loan servicer, you may go to StudentAid.gov to find your servicer and view your federal loan information.

Sincerely,

U.S. Department of Education

Federal Student Aid

CONFIDENTIALITY NOTICE: This e-mail message, including any attachments, is for the sole use of the intended recipient and may contain confidential and privileged information. Any unauthorized review, use, disclosure or distribution is prohibited. If you are not the intended recipient, please contact the sender by reply e-mail and destroy all copies of the original message.

I would suggest filing for Defense to Repayment if you feel the school defrauded and basically oversold what they could do for your career – learn more here: Borrower Defense to Repayment | Federal Student Aid

I managed to rack up over $165,000 at a private university in Washington, Bastyr University. Does anyone know if I qualify for joining this Debt Collective? I guess I’m just unsure because I went to a private uni, BU is a non-profit.
If anyone knows who I can contact to find out if I qualify that’d be great. I’m totally new to this! This is my first post. :slight_smile:

I attended UOP for less than a year from 2010-2011. I was married at the time to an active duty soldier and used MyCAA funds to cover 6k of tuition. I believe I was completely misled by the college about the financials and tried to convey that on my borrows defense for repayment claim. They denied my because they stated there were no legal claims? To my application. Does anyone have any idea on who I can contact to appeal their decision. I also found it interesting that it took them only weeks to deny my claim after being forwarded into a class action lawsuit that would have completely paid off the remainder of my loans.

Hi! I am a graduate of Kaplan University. My student loan debt plus interest tops $114,000. I have filed the Borrower Defense Application and was declared ineligible. I have filed for reconsideration. I have seen several people posting the letters they have received saying their claims are ineligible. How do I know they actually investigated by claims? It is very defeating as I believe they lawsuit against Sweet vs DeVos addresses the time they are taking to process the claims. I feel they are mass denying claims just to become more compliant with the proposed settlement. My situation is one many other are in. I cannot get the high paying job they promised I would find which leaves me with this looming student loan debt that I will be paying on until I die, seriously! How do we know they are really looking into our claims?

I received a similar ineligibility letter. I went to Everest (Corinthian Colleges). There is a hearing on Oct. 1st on the Sweet v. Dubose case. Hoping enough evidence will convince the judge that the government just denied all of these applications (at poll from a Zoom conference I attended yesterday suggests 94% were denied) instead of actually reviewing the evidence and treating this fairly. Don’t lose hope! We are all in this together - they just want us to give up the fight. Keep fighting, keep researching, keep doing what you can to win this battle!

I am a former student of ITT Technical Institute and was enrolled and graduated during the years that ITT was being investigated on. The main reasons I had attended this college was for the job placement and the ability to transfer my credits to an University. They lied and manipulated me by assuring me that since my professors were actual people in my field of study that i would have the opportunity for job placement or at least experience at the very least. During my last quarter of schooling is when I started questioning ITT and their fraudulent claims. When I asked each professor what type of job placement they was willing to provide us after graduation they all looked at me with blank stares and said they had no idea of what I was talking about. I knew going into the legal field, I would need to either know someone that knows someone or have some kind of internship/externship to get my foot into any legal office. This is why I had choose ITT. I felt like I was took advantage of but I still tried to stay optimistic about my situation. After graduating I set out with my portfolio and diploma in hand to try and secure some kind of experience as a Paralegal. After 6 months of trying to get any attorney to just give me free work I was turned away by the last one without even being seen. I quickly asked why? I was told that my degree was useless and that since my college was ITT Tech it was obtained fraudulently and they didn’t want anything to do with a student that participated in a college that was shut down for fraud. I have still yet to get a decision on my application for borrower defense and I filed it for the first time in 2014 and the second time in 2016 when I got informed that they had no knowledge of my first application.

I am sorry this has happened to you @janderfield. I consider it a bit of good news actually that you haven’t heard anything about your DTR, since they are basically denying almost everyone. Hopefully we will have a new administration to deal with next year and they will start doing justice to people who attended ITT and other schools.

In the meantime, you might want to keep your eyes on the developments in the Sweet vs. DeVos case. If we end up with a second Trump term, the courts will end up being our only realistic hope for justice on DTR.

I have been keeping up with the Devos case. I listened in on this last court session on September 30th in California. The judge denied the settlement agreement and how the DOE was handling the blanket denials after they handed down the settlement. He had one of the class members actually get their letter of denial and read it to him word for word beginning to the end. He was not happy with the DOE either and he addressed the lack of evidence that the DOE was providing in support of the denials. He said that if rejects the previous agreed upon settlement that there WILL be an actual court hearing with ACTUAL depositions taken and jury members. So i was pleased with the outcome.

Hey I went to the Art Institute of Philadelphia from about 2008-2012. I have about $52,000 in Federal Student Loan Debt, and about $26,000 in Private Student loans. I know my private are just here forever. But was there sufficient evidence against the Art Institute of Philadelphia of wrong-doing? Or a specific lawsuit? I’d like to file for defense of repayment, but I’m curious if any other Art Institute of Philadelphia or any Art Institute students have any info of lawsuits or class actions etc…

@millercolinr you absolutely should file a borrower defense. You don’t need a lawsuit to justify filing a borrower defense.

More info here:

I light of the news that loans as far back as 2005 will be forgiven for ITT Tech students which is great! I started ITT in 2003 and graduated in June 2005. Does anybody know what that means for my loans? Also just I received this email from the department of education about my defense for borrowers act claim.
Who can help me break down what this stuff means for me. Thank you

August 18, 2022

Borrower Defense Application #: redacted

Dear Dcriggs13:

Your rights may be affected, please read carefully.

You filed a borrower defense application asking the U.S. Department of Education (“Department”) to cancel some or all of your federal student loan debt because you allege the school you (or your child) attended engaged in unlawful conduct. We write to inform you that there is a proposed settlement in a class action lawsuit that could affect your claim and to explain how your legal rights may be affected by that lawsuit.

As a borrower defense applicant, you may have been previously informed of a class action lawsuit called Sweet v. DeVos, which challenged the Department’s delay in issuing final decisions on borrower defense applications, including yours. You may also have been informed in 2020 that the parties had proposed a settlement of the lawsuit, subject to the court’s approval. The court did not approve that proposed settlement, so the lawsuit continued. You can find more information about that here: https://www.ppsl.org/news/news/press-releases/in-new-ruling-judge-denies-borrower-defense-settlement-over-department-of-educations-perfunctory-alarmingly-curt-denials-press-release.The lawsuit now also challenges the Department’s denial of certain borrower defense applications.

We now write to inform you that there is a new proposed settlement of the lawsuit. The settlement will not become final until it is approved by the court as fair, adequate, and reasonable. This Notice describes how your legal rights may be affected by this settlement.

What is the case about?

A lawsuit was filed in a federal court in California by seven borrower defense applicants who represent, with certain exceptions, all borrowers with pending borrower defense applications. The lawsuit challenges the way the Department has been dealing with borrower defense applications over the past few years, including the Department’s delays in issuing final decisions and the Department’s denial of certain applications starting in December 2019. The case is now called Sweet v. Cardona, No. 3:19-cv-3674 (N.D. Cal.).

Now, both parties are proposing to settle this lawsuit. This proposed settlement is a compromise of disputed claims, and Defendants continue to deny that they have acted unlawfully.

What are the terms of the proposed settlement for borrowers who applied for borrower defense relief on or before June 22, 2022?

In the proposed settlement, the Department agrees to resolve the borrower defense applications of people who have borrower defense applications pending as of June 22, 2022 on the following terms:

If your borrower defense application related to federal student loans borrowed to pay for attendance at a school on the list attached to this letter, you will receive a discharge of federal loans associated with that school and a refund of any amounts paid to the Department on those federal loans, and the credit tradeline for those loans will be deleted from your credit report. Within 90 days of the date that the court’s approval of the settlement agreement becomes final, the Department will notify you that you will receive this relief. You will receive the relief within one year of the final effective date of the settlement agreement. Until this relief is provided, the Department will not take action to collect your debt.

If your loans are not associated with a school on the list attached to this letter, you will receive a decision on your application according to the following schedule:
If you submitted your application between January 1, 2015 and December 31, 2017, the Department will issue a decision no later than 6 months after the court’s approval of the settlement agreement becomes final.
If you submitted your application between January 1, 2018 and December 31, 2018, the Department will issue a decision no later than 12 months after the court’s approval of the settlement agreement becomes final.
If you submitted your application between January 1, 2019 and December 31, 2019, the Department will issue a decision no later than 18 months after the court’s approval of the settlement agreement becomes final.
If you submitted your application between January 1, 2020 and December 31, 2020, the Department will issue a decision no later than 24 months after the court’s approval of the settlement agreement becomes final.
If you submitted your application between January 1, 2021 and June 22, 2022, the Department will issue a decision no later than 30 months after the court’s approval of the settlement agreement becomes final.

If you do not receive a decision within the timeline outlined above, you will receive a discharge of federal loans associated with your borrower defense applications and a refund of any amounts paid to the Department on those federal loans, and the credit tradeline for those loans will be deleted from your credit report.

The Department will decide your application in a streamlined review process that will determine whether the application states a claim that, if presumed to be true, would assert a valid basis for borrower defense; will not require further supporting evidence; will not require proof of reliance; and will not apply any statute of limitations to your application.

If your application is approved under the procedures above, you will receive a discharge of federal loans associated with your borrower defense application and a refund of any amounts paid to the Department on those federal loans, and the credit tradeline for those loans will be deleted from your credit report.

The Department will not deny your application without first providing instructions on what is required for a successful application and giving you the opportunity to resubmit your application.
If you choose to resubmit your application, you must do so within 6 months after receiving those instructions. The instructions will explain that if you do not resubmit within the 6-month period, your application will be considered denied.
If you choose to resubmit your application within the 6-month time period after receiving the instructions, the Department will issue you a final decision no later than 6 months after receiving your resubmitted application.

If you received a notice from the Department in December 2019 or later informing you that your borrower defense application was denied, that denial has been voided and the Department is reviewing your application pursuant to the terms described above.
What are the terms of the proposed settlement for borrowers who applied for borrower defense relief after June 22, 2022 but before final approval of the settlement?

If you submitted your application after June 22, 2022, but before the court approves the settlement agreement, the Department will issue a decision on your application no later than 36 months after the court’s approval of the settlement agreement becomes final. If the Department does not issue a decision within that time period, you will receive a discharge of federal loans associated with your borrower defense application and a refund of any amounts paid to the Department on those federal loans, and the credit tradeline for those loans will be deleted from your credit report.
Does the Department have any reporting obligations?

The Department will provide your lawyers with information about its progress making borrower defense decisions every three months, including how many decisions the Department has made and how many borrowers have received a loan discharge.
What if my loan is in default?

If you are in default, the Department will not take action to collect your debt, such as by garnishing your wages (that is, taking part of your paycheck) or taking portions of your tax refund, while your application is pending or while you are waiting to receive any relief you are owed under the settlement.
What happens next?

The court will need to approve the proposed settlement before it becomes final. The court will hold a public hearing, called a fairness hearing, to decide if the proposed settlement is fair. The hearing will be held on November 3, 2022, beginning at 11 AM Pacific Time, at the following address:

United States District Court
Northern District of California
450 Golden Gate Avenue, Courtroom 12, 19th Floor
San Francisco, California 94102

Information about the hearing, including the process for participation and virtual attendance (if any), will be posted at Sweet — Project on Predatory Student Lending.

What should I do in response to this Notice?

IF YOU AGREE with the proposed settlement, you do not have to do anything. You have the right to attend the fairness hearing, at the time and place above, but you are not required to do so.

IF YOU DISAGREE WITH OR HAVE COMMENTS on the proposed settlement, you can write to the court or ask to speak at the hearing. You must do this by writing to the Clerk of the Court, at the following mailing address:

Clerk of the Court
United States District Court
Northern District of California
450 Golden Gate Avenue
San Francisco, California 94102

You can also submit comments by email to the Clerk of Court at whacrd@cand.uscourts.gov. Your written comments or request to speak at the fairness hearing must be postmarked or date-stamped by September 15, 2022. The Clerk will provide copies of the written comments to the lawyers who brought the lawsuit.

Where can I get more information?

There is more information about the Sweet lawsuit on Class Counsel’s website at Sweet — Project on Predatory Student Lending. Check this site periodically for updated information about the lawsuit.

A copy of the proposed settlement is available online at Sweet — Project on Predatory Student Lending.

If you have questions about this lawsuit or about the proposed settlement, please visit this Frequently Asked Questions page, Sweet v. Cardona Class Members — Project on Predatory Student Lending, which also has contact information for the lawyers who brought the lawsuit.

Sincerely,
U.S. Department of Education
Federal Student Aid

If you applied before the June date they mentioned and your school is on the list - you’re likely to get your loans cancelled - (even if you got that mass denial back in 2019) we will know for sure in November when they finalize the agreed upon decision. If you applied after the June 2022 timeline - your application will be reviewed and a decision made within 3 years.
Hope that helps! You can get more information here — https://facebook.com/groups/801761750635952/
Jen