News
Statement on The Department of Education Settlement Resulting in Closure of For-Profit School Florida Career College
The U.S. Department of Education today announced a settlement agreement with for-profit school owner International Education Corporation (IEC) and its subsidiaries—Florida Career College (FCC) and United Education Institute (UEI), which also uses the brand name, UEI College (UEIC)—related to violations of the ability-to-benefit (ATB) test regulations. These regulations govern eligibility to receive federal student aid for students who do not have a high school diploma or GED equivalent.
STATEMENT on Navient Outsourcing Student Loan Servicing to MOHELA
BOSTON – Navient announced that it will outsource student loan servicing for its $17 billion portfolio to loan servicer MOHELA. The Project on Predatory Student Lending represents more than one million student borrowers across the country. Many of these borrowers hold private student loans with Navient for predatory for-profit schools, even after their federal loans from those same schools have been canceled due to the schools' misconduct.
Statement: Project on Predatory Student Lending Welcomes New Director of Litigation
The Project on Predatory Student Lending (PPSL), the leading nonprofit legal organization representing borrowers defrauded by predatory colleges, announced that Noah Zinner has joined the team this month as PPSL’s Director of Litigation. In this executive team role, Zinner will oversee PPSL’s overall legal strategy and team of attorneys.
STATEMENT on Department of Education Fining Grand Canyon University $37M for Misrepresenting Online Graduate Programs
Today, the Department of Education announced a $37.7 million fine against Grand Canyon University (GCU) for lying to more than 7,500 former and current students over several years about the cost of its doctoral programs. The school falsely advertised a lower cost than what 98% of students ended up paying to complete certain doctoral programs.
STATEMENT: Select University of Phoenix Students Secure Borrower Defense Win with ED Discharge
In another victory for defrauded former for-profit college students, today the U.S. Department of Education announced that it would approve nearly $37 million in borrower defense to repayment discharges for more than 1,200 students who enrolled at the University of Phoenix between Sept. 21, 2012, and Dec. 31, 2014, and applied for relief.
Federal Student Loan Servicer MOHELA is Failing to Comply with Borrower Defense Settlement
Borrowers report MOHELA informed them their federal student loans, which were ordered discharged under the Sweet settlement agreement, will go into repayment in October
Social Work Graduate Students Sue USC Over Online MSW “Diploma Mill”
Graduates of the University of Southern California’s (USC) online Master of Social Work (MSW) program filed a class action lawsuit against USC for misrepresentation, false advertising, and other deceptive, unfair and unlawful business practices.
Student Borrowers Win Another Victory in Sweet v. Cardona as Supreme Court Denies Intervenors’ SCOTUS Petition Attempting to Stop Settlement
The Supreme Court denied a petition filed by three intervening institutions—Lincoln Educational Services Corporation, American National University, and Everglades College, Inc.—asking SCOTUS to stay the $6 billion borrower defense settlement and seeking to bypass the standard appeals process.
Student Borrowers in Sweet v. Cardona Defend $6 Billion Borrower Defense Settlement in SCOTUS Brief
In the class-action lawsuit Sweet v. Cardona, borrowers filed a brief with the Supreme Court of the United States in response to a petition filed by three intervening institutions—Lincoln Educational Services Corporation, American National University, and Everglades College, Inc.—asking SCOTUS to stay the $6 billion borrower defense settlement and seeking to bypass the standard appeals process, which is set to begin in May in the Ninth Circuit.
UPDATE: Judge Denies Motion to Stay Settlement Relief in Sweet v. Cardona
Judge William Alsup denied the motion to stay implementation of settlement relief in the borrower defense lawsuit Sweet v. Cardona.