The Department of Education agreed to a $6 billion settlement to cancel debt for 200,000 borrowers. Borrowers will receive a full discharge of their loans, a refund, and credit repair. An additional 60,000 borrowers will have their cancellation decisions reviewed individually.
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The Department of Education agreed on June 23 to cancel the student loan debt of about 200,000 borrowers, wiping out about $6 billion in total debt. More than 60,000 additional borrowers may also see their debt axed. Nearly all the schools involved are for-profit colleges or vocational programs.
The settlement stems from a 2019 class action lawsuit, Sweet v. Cardona , which argued many borrower defense claims for loan cancellation were being ignored by the Department of Education. Borrower defense to loan repayment, often referred to as borrower defense for short, is a program from the federal government that allows you to discharge some or all of your student debt if your school defrauded you or violated specific state laws, like consumer protection statutes.
You must prove you suffered specific financial harm as a result, such as not being employable as a result of your program. How to know if you qualify You don’t need to do anything to join the Sweet v. Cardona class action lawsuit.
You are a member if you submitted a borrower defense application on or before June 22, 2022, and have not received a decision, or received a form denial in or after December 2019. There’s no cost to be a part of the class action lawsuit, and borrowers from any listed school qualify. The class is made up of 264,000 people who have a pending borrower defense application as of June 22, 2022 (the date when the agreement was signed).
About 200,000 attended one of the over 150 schools listed below and will get a full discharge of their loans, a refund of what they’ve paid, and credit repair. The Department of Education has found significant indicators of misconduct by these schools and has noted a high number of borrower defense applicants from these schools. The other 64,000 in the class attended schools not on the list below.
They will get individualized decisions on their borrower defense applications within rolling deadlines, depending on how long their applications have been pending. If you’re a borrower whose school isn’t on the list, you may have to wait to get your forgiveness decision. Predatorystudentlending.
org How do you apply for borrower defense? To apply for borrower defense , you’ll need your Federal Student Aid ID, school name and program of study, enrollment dates, and evidence to support why you believe you are eligible for borrower defense. You can apply online or by filling out a PDF and sending it in via email or standard mail. The application process will take roughly 30 minutes.
To get more information on the status of your application, you may call the Department of Education’s borrower defense hotline at 1-855-279-6207. You can speak with someone Monday through Friday from 8 a. m.
to 8 p. m. ET.
There is a limited pool of borrowers who qualify for borrower defense, but it doesn’t hurt to apply and see whether you’re eligible if you believe your school defrauded you. Which schools qualify? A ATI Career Training Center ATI College ATI College of Health ATI Technical Training Center Al Collins Graphic Design School All-State Career School Allentown Business School American Career College American Career Institute American College for Medical Careers American Commercial College American InterContinental University American National University American University of the Caribbean Anamarc College Anthem College Anthem Institute Argosy University Arizona Summit Law School Ashford University B Bauder College Beckfield College Berkeley College Blue Cliff College Branford Hall Career Institute Briarcliffe College Brightwood Career Institute Brightwood College Brooks College Brooks Institute Brown College Brown Institute Brown Mackie College C California College San Diego California Culinary Academy California School of Culinary Arts Capella University Career Point College Carrington College Center for Employment Training Chamberlain University Charlotte School of Law Chicago School of Professional Psychology CollegeAmerica Collins College Colorado Technical University Concorde Career College Concorde Career Institute Cooking and Hospitality Institute of Chicago Court Reporting Institute Court Reporting Institute of St Louis D Daymar College DeVry College of Technology DeVry University Devry Institute of Technology Dorsey College E Empire Beauty School Everglades University F FastTrain Florida Career College Florida Coastal School of Law Florida Technical College Fortis College Fortis Institute G Gibbs College Globe University Grand Canyon University Gwinnett College H Hallmark Institute of Photography Hallmark University Harrington College of Design Harris School of Business I ITT Technical Institute Illinois Institute of Art Independence University Institute for Health Education International Academy of Design and Technology International Technical Institute K Kaplan Career Institute Kaplan College Katharine Gibbs School Keiser University Keller Graduate School of Management Kitchen Academy L La’ James College of Hairstyling La’ James International College Le Cordon Bleu Le Cordon Bleu College of Culinary Arts Le Cordon Bleu Institute of Culinary Arts Lehigh Valley College Lincoln College of Technology Lincoln Technical Institute M Marinello School of Beauty McCann School of Business & Technology McIntosh College Medtech College Miami International University of Art & Design Miami-Jacobs Career College Micropower Career Institute Miller Motte Business College Miller-Motte College Miller-Motte Technical College Minnesota School of Business Missouri College of Cosmetology North Mount Washington College N NUC University National University College New England College of Business and Finance New England Institute of Art O Orlando Culinary Academy P Pennsylvania Culinary Institute Pittsburgh Career Institute Purdue University Global R Radians College Remington College Robert Fiance Beauty Schools Robert Fiance Hair Design Institute Robert Fiance Institute of Florida Ross University School of Medicine Ross University School of Veterinary Medicine S Salter College Sanford-Brown College Sanford-Brown Institute School of Computer Technology Scottsdale Culinary Institute South University Southern California School of Culinary Arts Southern Technical College Star Career Academy Stevens-Henager Suburban Technical School Sullivan and Cogliano Training Centers T Texas Culinary Academy The Art Institute Tucson College U Ultrasound Diagnostic Schools United Education Institute University of Phoenix University of the Rockies V Vatterott College Virginia College W Walden University Washington Business School Western Culinary Institute Western International University Western School of Health and Business Careers Western State University College of Law Westwood College Wilfred Academy Wilfred Academy of Beauty Culture Wilfred Academy of Hair & Beauty Culture Wright Business School Wright Career College Ryan Wangman, CEPF Junior Loans Reporter Ryan Wangman is a junior reporter at Personal Finance Insider reporting on personal loans, student loans, student loan refinancing, debt consolidation, auto loans, RV loans, and boat loans. He is also a Certified Educator in Personal Finance (CEPF).
In his past experience writing about personal finance, he has written about credit scores, financial literacy, and homeownership. He graduated from Northwestern University and has previously written for The Boston Globe. Learn more about how Personal Finance Insider chooses, rates, and covers financial products and services here >> Read more Read less.
From: businessinsider_us
URL: https://businessinsider.com/personal-finance/student-debt-cancelled-sweet-cardona-settlement-2022-6
