BREAKING: We've won another billion dollars of debt discharged for 72,000 Corinthian & ITT students

Borrower Defense to Repayment (DTR)
#1

The Department of Education announced today that anyone who previously got their borrower defense to repayment application approved, but were only awarded partial discharge, will now be given 100% discharge.

At this time they have not said anything about what will happen to people who have previously been denied, or who are still waiting to hear about their borrower defense to repayment. We will keep fighting on this front.

But for 72,000 former Corinthian and ITT students who got approved for discharge, they will now be getting 100% of their fraudulent debts discharged. If this happened to you, you should be getting notified soon from FSA.

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Celebrate our victories, organize for more
#2

Honestly this is a huge breakthrough and truly creates huge momentum. Definitely celebrate, but time to truly dig in hard on this momentum.

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#3

I am one of those students from CCI. I will let you know if the DOE keeps their word as I will have to jump through the loops to refi to direct loans. From my reading of the documents obtained by Harvard for the new filing posted on Friday, March 19, the previous ruling allowed for FFEL loans to be refi into direct and was given loan forgiveness.

I honestly can’t thank Debt Collective enough for all of the help and support they have given me in the last 5 years to make this a reality. It really was all of you and shout out to Thomas for his hard work.

Thank you!
Alicia D.

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#4

Two things.

First we are holding a celebratory zoom on Sunday. It would be great to have you there @Alicia_Davis1

Let’s celebrate our victories as we continue to fight for justice. Join us 4 p.m. ET / 3 p.m. CT / 2 p.m. MT / 1 p.m. PT Sunday, March 28 to celebrate and to kick off our week of action to fight for full cancellation and College for All. RSVP here.

Second, yes, I think they will probably require you to consolidate your FFEL loans into direct loans. Although if you already got approved for a partial discharge, wouldn’t you have already done this in order for them to process that partial discharge? If you haven’t done it yet, you can start the process now by going here:

https://studentaid.gov/app/launchConsolidation.action

#5

Thomas,

I will be there!! I’ll never stop fighting for others to obtain cancellation.

I didn’t refi after the 10% approval as I didn’t want to put the loans together. Do you know if I can refi even if the loans are in default? I’m looking into to options. I read in the new filings from Friday by Harvard that ffel loan holders that are able to refi.

#6

Have they been keeping your loans in a default status this whole time? That makes me so angry. They should really be paying you damages in addition to cancelling all this debt.

You should be able to consolidate into direct loans to pull your FFEL loans out of default once. So if you have already consolidated to bring them out of default before in the past, we might run into some additional hurdles. But if this is your first time doing that, you should be fine. Let me know if you run into any problems and we can get on the phone and troubleshoot together.

Then after this is all cancelled let’s give it a month or so to process and then let’s pull your credit reports and make sure they have removed not just the loan from your report, but the whole history of default. That is truly shameful that they did that. Let’s undo it.

#7

The loans have been in default and have reporting as negative for a long time. ECMC has been messing with my credit naturally, closing out the loans on my one of my credit reports which dropped my credit score. They are really affect my Tranunion. They are noted as default and collections. They have never been in forbearance with ECMC. I look at the fees and charges every month and nothing makes sense what they are charging and taking away. I wanted to wait and see the finally amount so I could keep track and babysit the cancellation.

I have never transfered them to direct so this will be the first time. As for damages, I agree…

I’ll keep ya posted. I’ll start the process since it takes 2 weeks. Thank you for everything.

#8

How long will it take to be notified? I’m an ITT victim and need to get my loan cleared in order to qualify for a home refinance.

#9

I’m not sure. I expect the notification shouldn’t take too terribly long, but I kinda expect the notification to say it will take them 90-120 days (or something like that) to actually process the discharge.

If you have FFEL loans it could take longer, and you will need to consolidate into direct loans to facilitate the discharge.

#10

Update - I am starting to see discharges through several FB groups relating to Heald and CCI students. A lot of people are getting letters of their 100% discharge from the DOE dated April 12 and it is now mid-late May. There was one turnaround from the applicant getting her DOE letter on April 12, 2021 and her LSP processing the information within 5 weeks. She received the final letter of discharge on May 20. Another Heald student received her discharge but actually had a return deposit from the department first before being notified that the loans were discharged. It looks to be money she paid on the loans and it was a reimbursement.

-AD

#11

Thanks for the report back!

This is good news.

Odd about that April 12 date, given it is well over a month later. But that doesn’t matter so long as the discharges are actually processed.

Now we should all be setting calendar alerts for Oct. 10, 2021 which is the 181 days after April 12. This is the date that the discharge should be processed by. I wonder if they have included any additional information for FFEL borrowers. Unless they have changed the process, I’m expecting FFEL borrowers will have to consolidate first.