“The anxiety returns.” – What a Stay in Sweet Would Mean for Class Members
On November 17, 2022, over 200,000 student borrowers – many of whom had been waiting close to seven years for a decision on their borrower defense applications – rejoiced. The Sweet v. Cardona settlement won final approval and the end of their long road to loan relief was finally in sight.
However, just as class members started the final countdown to the settlement effective date, three intervening schools filed an appeal and motion to stay the settlement. Until the district court can rule on the motion, it ordered the Department of Education to delay settlement relief for all members of the automatic relief group — class members who attended one of the schools on the Exhibit C list. This crushing delay affects hundreds of thousands of borrowers who simply can’t afford to wait another day for relief.
As part of the opposition to the intervenors' motion, PPSL asked class members to share the impact that a delay in settlement relief would have on their lives. We received over 3,000 responses. Borrowers from around the country came forward to share deeply vulnerable, personal stories about what was at stake for them and their families.
They described the toll on their physical and mental health:
Karlene Liranzo, a class member from Syracuse, NY, wrote: “The delay would bring more dread into my existence. I have been saddled with this debt, doing the best I can to come to terms with the harm that was done by this fraudulent school. It has affected my life in trying to get a car, a home, trying to live. Trying to keep my head above water and juggle payments. My peace of mind is at stake, my financial freedom is at stake. My heart dropped when the appeals were first discussed. The anxiety returns. I want to have a family and have children without the fear of this debt hanging over them. I won’t even marry my boyfriend because of my student debt in fear that they will burden him if something happened to me. Please, do not let this continue. Not for just my sake, for the countless others that are also in worse situations. The ones that want to die, the ones who can barely make it.”
Ami Schneider, a class member from Hoffman Estates, IL, wrote: “I graduated almost 13 years ago from a predatory for-profit college and have spent years fighting for justice. I filed my Borrower Defense to Repayment in AUGUST of 2015!! So much of my life and so much of my mother’s life has been put on hold because of the delay in adjudication of my/our claim(s) against the school. I have never found employment in my field of study, yet I hold tens of thousands in debt for a fraudulent education. My mother has been putting off her retirement as we wait in limbo for these loans to be cancelled. Another delay would be a smack in the face from a predatory industry that has already caused so much irreparable damage. Delaying this process again will add to my anxiety and depression. I am tired of fighting for justice when justice could have been served time and time again. This settlement is something we have collectively fought so hard for.”
Meghan Ratte, a class member from Watertown, NY, wrote: “I lost my home and everything I owned to a house fire in April 2022. This debt even affected me trying to replace and rebuild mine and my daughter's lives - my car was destroyed, and my credit was barely good enough to get a replacement; I had to rely heavily on my credit cards, which are nearly maxed out, instead of being able to get a personal loan to fund the purchase of clothing, shoes, food, and work equipment for my job and small business. A loan would have had lower interest rates, and saved me money over time. I had intentions of building a home this year, after experiencing such a devastating loss, and finally owning something - something I have wanted to do for 15 years. But without the settlement being put into action, I cannot move forward. I am trapped in limbo. I can't move on with life, I can't get out from under the weight of the depression and hopelessness it puts me in, and I cannot feel financially stable.”
Many shared details on what a stay would mean for them financially:
Tiffina L. Haigler, a class member from Charleston, SC, wrote: “I was patiently waiting for January 17, 2023 to finally exhale after years of battling crippling debt. I thought I would finally realize my dream of home ownership as my lender needed proof of the pending relief. I have gone through a financially devastating divorce and bankruptcy and this set back is devastating.”
Ashley Knox, a class member from Frankfort, Michigan, wrote: “I currently have close to $400,000 worth of student loan debt with the greater majority being federal loans covered under the settlement. I can’t afford my loan payments which are estimated around $4300 a month. My husband and I combined don’t come close to that. In our area we have what could be considered good jobs but we barely scrape by every month without my loan payments. We live in rural northern Michigan so access to jobs in my field of Psychology that offer a decent livable wage, is near impossible to help make those payments. I have two young boys I am working to provide for. I already feel like I don’t do enough, making $4300 loan payments a month, I’ll lose my vehicles. How can I get to work to make those payments if I don’t have a car? My husband and I struggle to get approved for home or auto loans because he can’t include me on them because of my student loan debt. I'm a liability; “debt to income is too high.” But if we could include my income in the loan it would increase our chances. I’m frustrated that I allowed myself to be taken advantage of by a predatory school.”
Others shared how the debt and uncertainty has hindered their desire and ability to go back to school:
Tracey Quattlebaum, a class member from Oak Hill, WV, wrote that if a stay is granted, “I will, once again, be at a standstill in my life with 55k in debt. Ashford’s practices of maxing our federal aid have caused me to not be able to attend another college to get my degrees because I cannot qualify for more funding. I also can’t use my Chapter 35 benefits through the Department of Veterans Affairs because no school wants to accept me due to no aid or loans available. My credit is damaged due to the amount of loans. So I am basically stuck in this situation until resolved with no degrees and no career. Our family has taken a financial hit because I have no degree, no money making career as was promised.”
Ginger Gibson, a class member from Louisville, KY, wrote: “As of [1/21/23] it has been exactly 23 years since my school closed and left me with no degree, no credits, no transcripts, and a mountain of debt for 8 months of school. I am now 45 years old with no education because I can't afford anymore debt. This has directly altered the course of mine & my children's lives. I was hoping to be able to go back to school this year but if this continues I am out of luck, again. Please let me get this relief so I can finally get the education I wanted & deserve.”
Borrowers with children expressed their fears about how this will affect the next generation:
Erika Kollmann, a class member from Westerly, RI, wrote: “I am a single mom of 2 children, one of whom is severely disabled. I have been struggling to save for a down- payment on a first home for my family. I need the loans discharged before a mortgage loan application would be approved, and I would be able to move my family into an appropriate and affordable home that would accommodate the special needs of my child. This appeal is lengthening our wait-time and is forcing me to continue to pay unaffordable and ever-increasing rental home rates.”
Victor Cruz, a class member from Whittier, CA, wrote: “I’m having my first baby on Feb. 26th 2023 and I was so delighted to hear the settlement was approved after over 10 years of having this fraudulent loan on my credit. It would be perfect timing for the settlement to have cleared off my name in time for me to be able to have proper credit to purchase a home for my family. Unfortunately another delay can cause unforeseen consequences for the livelihood of my newborn. It’s paramount that the courts keep all the judge’s ruling in place for the stability of many families including mine vs the profits of these colleges that defrauded their students.”
We included 144 of these stories in our opposition to the motion to stay, as proof that the impact of this settlement isn't hyperbole. There are approximately 200,000 people whose lives are in limbo because of the desperate actions of three schools who, as we have argued to the court, have no standing in this case.
On February 15, 2023, a hearing will be held to determine whether the motion to stay is granted or if settlement implementation will go forward as intended. As ever, we will continue to fight alongside student borrowers until they get the relief and justice they are owed.