For-profit schools appeal student loan cancellations for 200,000 borrowers

There are three for-profit colleges appeal to block a decision to cancel more than $6 billion in student loans for 200,000 borrowers who applied for debt relief because they believed they were They cheat on their studies or engage in other immoral behavior.

Of the settlementwhich was included above 100 schoolssolution a class action lawsuit filed by the lead plaintiff, Theresa Sweet, against Betsy DeVos, the US Secretary of Education under the Trump administration, after DeVos. These borrowers’ protection requests were denied in denial.

American National University, Everglades College Inc., and Lincoln Educational Services Corp. the notice was filed to appeal the decision which was announced in June and approved by the Office of Education in November.

The appeal represents another hurdle for students saddled with debt because of what lenders say are for-profit college financing practices.

“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,” Eileen Connor, director of the Project on Student Loans, said in a statement. “The court’s decision to grant approval of this decision is clear and unequivocal, and we believe the 9th Circuit will agree with Judge Alsup that these claims are without merit.”

Of the Project on Student Loans (PPSL) and Housing & Economic Rights Adviser (HERA) represented the plaintiffs.

Credit: Getty Images

Fixed condition

Student loan borrowers can apply for something called “borrower protection against loan repayment” – often shortened to borrower protection – if they believe their school has been cheat them or engage in some unruly behavior that violates the laws of the state, according to the law. Ministry of Education. The solution is to discharge some or all of the federal student loans.

Under the settlement, about 200,000 borrowers who applied for borrower protection and whose schools are on the foreclosure list could receive a Automatic relief includes full loan cancellation, repayment of amounts paid, and debt restructuring, according to Student Loan Project.

American National University, Everglades College, and Lincoln Educational Services (Lincoln Technical Institute) are on that list of schools. They are asking for a stay of appeal to prevent any borrowers from receiving relief until the appeal is decided.

“It is the plaintiff’s position that, unless the court agrees to grant a stay, the appellants will not be denied automatic relief (or any other aid for reconciliation),” the statement said. PPSL lawyers. “However, the final decision date will be postponed until after the review of the situation on January 26, which means that no assistance can be given.” until the end of this day”.

The appeal, if successful, will block the automatic discharge for those 200,000 borrowers.

A second group of students whose schools are not on the list – representing 64,000 borrowers – “will receive results on their applications (borrower protection) within schedule, depending on how long their applications have been pending,” according to PPSL. Union press release.

If they are not approved after the initial review, they can revise and resubmit their application. If the Department of Education fails to meet any deadline, “the student will automatically receive full relief,” the release said.

For borrowers who are unsure whether they are a member of the class, check the Project for Predatory Student Lending’s website for classmates.

Ronda is a senior personal finance writer for Yahoo Finance and an attorney with experience in law, insurance, education, and government. Follow him on Twitter @writesronda

Read the latest personal finance articles and news from Yahoo Finance.

Follow Yahoo Finance above Twitter, Instagram, YouTube, Facebook, Wet tableand LinkedIn.

Leave a Comment