This notice is for our members that filed DTR and attended Massachusetts Everest College

Borrower Defense to Repayment (DTR)
#1

We have an update for our members that attended the Massachusetts Everest College and filed a borrower defense to repayment (DTR). On June 25, 2020 the Federal Courts issued a ruling that ordered the Department of Education to discharge the debts related to DTR for individuals that attended this campus. This is a massive win that we hope will set a precedence in other court rulings. Though nothing is promised.

We will continue to fight for full debt cancellation on ALL student debt.

Here are a few highlights:

For the foregoing reasons, the Court concludes that:
(1) the DTR Application was a valid borrower defense application on behalf of all individuals who took out federal student loans to pay for the cost of attendance for students listed in Exhibit 4, including those who took out Parent PLUS loans;
(2) defendants constructively denied the DTR Application without rendering a reasoned decision, thus violating the APA’s prohibition on arbitrary and capricious agency action; and
(3) plaintiffs have established that they are entitled full loan discharges and a favorable borrower defense decision pursuant to 34 C.F.R. § 685.206©(1) (eff. until Oct. 16, 2018).
Accordingly, the Court hereby:
(1)ALLOWS the plaintiffs’ Motion for Judgment, Doc. No. 38;(2)DECLARES that the DTR Application was a valid borrower defense to repayment application submitted on behalf of all individuals who took out federal student loans to pay for the cost of attendance for students listed in Exhibit 4;
(3)SETS ASIDE the defendants’ constructive denial of the DTR Application for borrower defense relief submitted on behalf of all individuals who took out federal student loans to pay for the cost of attendance for students listed in Exhibit 4;
(4)DECLARES that plaintiffs have established a right to borrower defense relief for all individuals who took out federal student loans to pay for the cost of attendance for students listed in Exhibit 4
(5)DECLARES that plaintiffs are entitled to full loan discharges pursuant to the agency’s settled course of adjudication;29
(6)REMANDS this matter to the Secretary to render a reasoned decision not inconsistent with this Order;
(7)ORDERS the Secretary to issue her reasoned decision within 60 days of the issuance of this Order or such further time allowed by the Court;3

@Massachusetts

#2

This is a HUGE victory and will directly impact over 7,000 people.

But it also has potentially big implications for everyone else even if you don’t live in Massachusetts or you didn’t attend Everest.

That is because normally the courts give an enormous amount of leeway to the government and usually try to leave the actual decision making on administrative matters to the Department of Education. With this case, for the first time ever, the courts stepped in and basically said they were no longer going to let the Department of Education make the decision as to whether to approve or deny someone’s defense to repayment application. Instead the court was going to step in and make that decision themselves. That is HUGE because if other courts are willing to do the same, it means we could see a lot more debt discharged for a lot more people.

So let’s keep our eyes on the prize and keep organizing to win full cancellation for all $1.7 trillion of student debt, while also celebrating this victory for Everest students in Massachusetts. Even if you got a denial recently, or you are still waiting for justice, this is a victory for all of us to celebrate and could lead to more victories in the future.

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#3

This is awesome amazing news for those who attended Massachusetts Everest College! Hopefully all students who filed a DTR have their student debt discharged by DOE. It’s the right thing to do and long overdue!!!

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#4

Great victory! Huge win! Thank you @Thomas_Gokey and @Dawn_L for the updates. God Bless you both!

Keep fighting for us! Thank you.

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