Borrower defense discharge ineligibility --> Parent plus loan

Borrower Defense to Repayment (DTR)
#1

A tragic-comedy

The U.S. Department of Education has determined that my mother’s parent plus loan that she co-signed is ineligible for discharge. I knew this would happen, it’s an easy cop-out since it’s not the parent that actually attended the for profit institution. I had to use the evidence from my application when i did hers, but at the time as i was filling hers out it made no sense to use my evidence, but what evidence can a co-signer really have?
I have absolutely no hope for this coming election.
I don’t even know if it is worth the time to write them for reconsideration.
They said i failed to provide adequate evidence. and will not accept new evidence.

Quick summary
10/06/2020

Borrower Defense Application #: 000000

Dear -------------

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 a brick-and-mortar Westwood College campus in Georgia, Virginia, California, or Illinois. “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 Westwood College. 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.

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:

Evidence obtained by the Department in conjunction with its regular oversight activities
IL Attorney General’s Office
Westwood internal training and policy documents

#2

Ugh so frustrating with them. They are mass denying everyone so don’t feel as this is personal.

I would refile and reword your claim plus add some state and federal statutes for consumer protection laws that were broken against the school.

I don’t know much about Westwood but I thought their was a lawsuit relating to guilt of fraud (if my brain serves me right).

Check out the website “way back machine” and see if there are cached versions of their website showing other violations (like misrepresentation of job claims or partnerships).

Is there a FB group as well where there may be files to use?

-AD

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#3

Thanks for the reply and info about wayback.
I’ll check it out and plan my next move.

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#4

Remember that Sweet vs DeVos is challenging the mass denials too as the doe isn’t actually reading our evidence and cases. If the doe has to redo denials after April 20th, you may fall under that too.

If you do refile, that should put the loans back into forbearance.

Good luck!

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#5

The regulations clearly state that Parent Plus loans are not eligible for Borrowers Defense, nor are graduate school loans. BD only applies to undergraduate Fed Sub/Unsub, Stafford, Direct and FFEL loans that were consolidated…Your stuck with them.

#6

Student loans are not subject to FCRA or consumer protection laws given the industry is not under regulation which is why we’re all having problems.

She was denied because Parent Plus loans are not eligible for BD discharge and the regulations define what loans are or are not eligible and depending on when the loans were disbursed , sets a time limit to file along with other strict criteria.

The main reason many people on this website are having difficulty is because they did not read and understand their loan agreements or read the regulations subject to their personal circumstances.

That’s not the DOE’s fault.

#7

WokeandPissed,

It sounds like you don’t know how the BD works. Let me go ahead and give you some information so that you can better understand the process. A BD applicant can get approval no matter what federal loan they have (FFEL, Parent Plus, Direct). The BD letter states the discharge will only be applied to Direct Loans. Anyone can refinance the non-direct loans into a federal direct loan to obtain the discharge. This includes Parent Plus Loans. The BD denial has nothing to do with what type of federal loans the applicant has.

The consumer protection laws regulate the for-profit industry, and these businesses are to adhere to state and federal consumer protection laws. The argument by the writer isn’t about the student loan itself but the means the school took to obtain those student loans. They were taken out fraudulently and this violates consumer protection laws. The DOE has an obligation to protect the citizens from exploitation and corruption from the system. The DOE failed in doing that, so yes, it is the DOE’s fault.

If you’re going to come into this community to express your distaste about Borrower Discharge and attempt to scold people about student loan debt, get your facts straight.

#8

I’m just quoting the regulations stated in the denial letter, but good luck.

Kc~ Williams