I was a student at ITT in February 2004 when my campus was raided by the FBI. The FBI confiscated the stubent records including mine that proved that the school lied about graduation rates, pay and other false advertising they where using to attract students. They closed the school because of those lies and I have been fighting them for a long time using the defences for borrowers act. This decision to forgive the debt of ITT students only goes back to January of 2005, I was a student until June of 2005 but did not get any loans in 2005. Does anyone know how this will effect me? This will be real good news if I am included.
I just posted an email that looks like the ITT loans have been cancelled, so thats great news!
Yeah they say only back until 2005. I started in 2003. I can’t find anything on what that means for me.
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
Since the Biden administration announced the loan discharge for ITT Tech, does this mean we still have to wait for the Sweet v. DeVos to see our loans discharged?
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my dad was a student at ITT in the 1990s. I remember he had issues with his student loan and I think my mom made him pay it off. any ideas if he can be involved?