News
Delivering results for student borrowers
As we close out 2023, we look back at a year of delivering billions of dollars of loan relief for our clients and taking on the most pressing issues they face through impact litigation and advocacy. Here are a few highlights. We couldn’t have done it without your support.
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.
Colleges Confounded by Flood of Borrower-Defense Claims | Inside Higher Ed
In the borrower-defense program, the agency can grant relief if students were misled about their educational program or loan by their institution and harmed by it.
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
New Borrower-Defense Rules Blocked | Inside Higher Ed
Debt relief and consumer protection advocates criticized the appeal court’s decision. “This unexplained order from the Fifth Circuit is a gift to those who wish to operate predatory education schemes with impunity,” said Eileen Connor, president and director of the Project on Predatory Student Lending.
Court Blocks New Student Loan Forgiveness Rules In Latest Setback For Biden | Forbes
Advocacy groups for borrowers were critical of the ruling. “This unexplained order from the Fifth Circuit is a gift to those who wish to operate predatory education schemes with impunity. Borrower defense is an essential safeguard that has been in place for decades.” said Eileen Connor, President and Director of the Project on Predatory Student Lending in a statement. “
Biden's student debt forgiveness for defrauded borrowers blocked in federal court | USA Today
In a settlement for a case that traces back to the Trump presidency known as Sweet v. Cardona, Biden agreed to forgive $6 billion in debt relief for nearly 300,000 borrowers, for example. That relief isn't affected by Monday's injunction. Still, the group behind that push for relief was frustrated by the block of Biden-era rules.
Defrauded student loan borrowers ask government to return their refunds | The Washington Post
Now attorneys at the legal outfit Project on Predatory Student Lending are pressing the Education Department to apply the policy change retroactively. The organization, which has represented former for-profit college students in high-profile cases, recently wrote the department after hearing from Ellis and others about their refunds.