The schools are among 153 institutions — mostly for-profit colleges — that the Department of Education said it was involved in “a lot of misconduct … whether it was proven to be alleged or proven in some cases.” Former students of those schools who applied for debt relief are eligible for full loan forgiveness under the decision.
The agreement settles a class action lawsuit filed in 2018 by people who accused the department of ignoring their requests for loan forgiveness through a federal program called it is the borrower’s defense to repayment. It provides automatic relief, including refunds paid to federal agencies and debt relief, to about 200,000 people. Another group of approximately 64,000 borrowers, who are studying in schools that are not on the ministry’s list, can receive results on their applications within the deadline.
The colleges appealed the agreement resistance in the terms in July before the judgment was approved, saying that the transaction did not consider the validity of the claims of the borrowers and would damage their reputation. In addition to those arguments, the schools said in their latest motion that the Department of Education is also violating federal procedures by using its own rules to resolve student claims. lenders. They also say the department lacks the authority to authorize the cancellation of public debt, an argument raised in lawsuits seeking to repeal President Biden’s aid program.
“The department has violated the law, violated its own regulations, exceeded its statutory authority, and refused to order institutions like us, assuming we did something wrong,” wrote Lincoln Educational Services. in a statement Tuesday. It says the former students’ claims must be reviewed individually—and may be denied.
A statement from Everglades College, the parent of Keizer University and Everglades University, expressed these views. American National University did not immediately respond to requests for comment.
According to a spokesperson for the Ministry of Education, the court will resolve claims in a “complicated and equitable” manner for all parties.
“This appeal shows the intent of these schools to deny justice for borrowers, and we will not stop fighting until students get the relief they deserve,” said Eileen Connor, is the director of the Project on Predatory Student Lending, an advocacy group for borrowers.
Connor said that the decision of the court to approve the decision is “clear and unmistakable” and he believes that the 9th District will accept the claim brought by the schools as null and void.
US District Judge William Alsup d The Northern District of California, which approved the decision in November, on Tuesday scheduled a meeting for January 26 to discuss the motion and schedule a trial.