For-Profit College Student Loan Forgiveness List [Fraud]

• We maintain a list of schools, many of them for-profit colleges, that have defrauded students or have been alleged to have done so. We update it periodically.

• Borrowers whose schools are on the list may be eligible for loan forgiveness through Borrower Defense to Repayment.

• The Sweet v. Cardona settlement has expanded loan forgiveness options for many borrowers.

• Even if your school isn’t on the list, you may still have options if you suspect fraud.

• Multiple loan forgiveness programs are available, not just Borrower Defense to Repayment.

This comprehensive list includes schools that have been accused of defrauding students or are subject to borrower defense claims. It covers both closed institutions and those still operating. If you find your school in this list, you may be eligible for student loan forgiveness.

Points to Remember:

• Automatic Loan Discharge: Some schools, like the Art Institutes, Westwood College, and Marinello Schools of Beauty, have automatic loan forgiveness for certain periods.

• Individual Applications: For other schools, like DeVry University, you’ll need to apply for relief and provide evidence of misconduct.

• Sweet v. Cardona Settlement: This settlement provides loan discharges for thousands of borrowers who submitted applications against over 150 schools.

• Private Student Loans: While most forgiveness programs apply to federal loans, some relief may be available for private loans through Navient’s School Misconduct Discharge Program.

Common Types of Misconduct:

• Misrepresentations about educational services

• False or inflated job placement rates

• Deception regarding program accreditation

• Misleading information about credit transfers

• False promises about career outcomes

Remember: Inclusion on this list doesn’t guarantee loan forgiveness, but it indicates the school has been subject to scrutiny.

If you’re seeking relief from student loans due to school fraud, there are two main paths you should understand:

• Borrower Defense to Repayment: BDR is a federal program that allows you to request loan forgiveness if your school misled you or engaged in misconduct. You can apply for Borrower Defense to Repayment through the Department of Education. Some schools, like Corinthian Colleges and ITT Technical Institute, have received blanket approvals, meaning former students may receive automatic discharge without applying.

• Sweet v. Cardona Settlement: This class-action lawsuit settlement covers borrowers who submitted BDR applications by June 22, 2022, for loans associated with over 150 listed schools. If you’re part of this settlement, you may receive automatic loan discharge without further action.

How These Paths Intersect

• If you submitted a BDR application before June 22, 2022, check if you’re part of the Sweet v. Cardona settlement.

• If you submitted a BDR application after June 22, 2022, or if you haven’t applied yet, you’re considered a post-class applicant. You’ll need to go through the standard BDR process.

• Remember, some schools have received blanket discharge approvals outside of the settlement. Check the list above for your school’s status.

Remember, this table provides examples and is not exhaustive. Always check the most recent information from the Department of Education or consult with a student loan expert for your specific case.

Depending on your specific situation, your path to potential loan forgiveness will vary. Here’s a breakdown of what this means for different groups of borrowers, including expected timelines:

If Your School Has Received Blanket Discharge Approval

Schools like Corinthian Colleges, ITT Technical Institute, and some Art Institutes fall into this category. If you attended one of these schools, you may be eligible for automatic loan discharge without needing to apply.

The Department of Education should contact you directly about your discharge. Keep a close eye on your email and mail for official communications regarding your loan status.

If You’re Part of the Sweet v. Cardona Settlement

This applies if you submitted a BDR application by June 22, 2022, for a school listed in the settlement. Some of the schools include Ashford University, Kaplan Career Institute, Colorado Technical University, and Charlotte College of Law.

Your application should be reviewed and processed as part of the settlement agreement, potentially resulting in automatic loan discharge and refunds. The Department of Education has established the following timeline for processing these applications:

• Applications submitted before December 31, 2017: Decisions should have been made by July 28, 2023.

• Applications from 2018: Decisions should have been made by January 28, 2024.

• Applications from 2019: Expect decisions by July 28, 2024.

• Applications from 2020: Decisions should be made by January 28, 2025.

• Applications from January 1, 2021, to June 22, 2022: Expect decisions by July 28, 2025.

Visit the Project on Predatory Student Lending’s website to stay updated on the progress of your case. And check out the Education Departments on submitting a materially complete BDR claim.

If You Applied for BDR After June 22, 2022 (Post-Class Applicant)

As a post-class applicant, your application will be processed through the standard BDR review process. You should have received notice of this status by May 28, 2023, and can expect a decision on your application by January 28, 2026.

While the timeline for review may be lengthy, the Department of Education is working to streamline the process. You’ll need to clearly demonstrate how your school misled you or engaged in misconduct to strengthen your case for loan forgiveness.

If you haven’t received expected notifications or decisions, first check your email thoroughly, including spam folders, for messages from noreply@studentaid.gov. If you can’t locate any notifications, consider filling out the Class Notice Survey on the official settlement website to ensure your application is being properly processed.

If You Haven’t Applied for BDR Yet

If your school is on the list but you haven’t applied for BDR, you can still submit an application. Here’s what to do:

1. Gather evidence of how your school misled you or engaged in misconduct.

2. Submit your application through the Federal Student Aid website.

3. Be prepared for a potentially lengthy review process (potentially up to 3 years based on current timelines).

4. Continue making loan payments unless instructed otherwise.

If Your School Isn’t on the List

Even if your school isn’t on the list, you can still submit a BDR application if you believe you were misled. Additionally, consider exploring other loan forgiveness options.

Even after the Supreme Court struck down Biden’s first broad-based cancellation plan, his administration has forgiven tens of billions of dollars through other forgiveness programs. These programs include:

• One-Time Account Adjustment

• Public Service Loan Forgiveness

• SAVE Plan Forgiveness

• Closed School Discharge

• Total and Permanent Disability Discharge.

Check our article about “Biden Student Loan Forgiveness” for more information on these programs and their specific timelines.

The Borrower Defense to Repayment program has a complex history. Many borrowers applied for relief under this little-used program years ago, during the transition from the Obama to the Trump administration.

However, under Education Secretary Betsy DeVos, the U.S. Department of Education stalled these applications, leaving thousands of borrowers in limbo.

This inaction led to a class action lawsuit, which continued into the Biden administration.

In 2022, the case, now known as Sweet v. Cardona, reached a settlement. This agreement covered over 200,000 borrowers who had pending BDR claims against more than 150 schools, promising automatic loan discharges and refunds of payments made.

But the settlement faced delays. As of early 2024, the Department of Education missed court-ordered deadlines for implementing relief — mainly due to administrative hurdles, not from a lack of trying — leading to further legal action and oversight.

Simultaneously, the Biden administration has taken steps to address fraudulent practices in for-profit education:

• It approved widespread loan discharges for students of specific institutions like Corinthian Colleges and ITT Technical Institute.

• The administration has forgiven about $28.7 billion in debt for 1.6 million borrowers whose institutions engaged in misleading practices or closed down.

• New regulations have been proposed to streamline the BDR process and protect students from predatory practices.

Note: While the Sweet v. Cardona settlement provides relief for many, it doesn’t cover all potentially defrauded borrowers. Those not included in the settlement, or who attended schools accused of fraud after the settlement, still need to submit individual BDR applications.

The extensive list of schools that defrauded students reveals a significant issue in higher education. For many college students and graduates, this information may open doors to potential debt relief.

If you attended any of these institutions, you might be eligible for federal student loan debt forgiveness through programs like Borrower Defense to Repayment or the Sweet v. Cardona settlement.

This information can be valuable for borrowers seeking relief from educational debt incurred under potentially fraudulent circumstances. As the landscape of student loan forgiveness continues to evolve, staying informed about your options is beneficial.

Even if your school isn’t listed, you may still have avenues for loan forgiveness if you believe you were misled. You can apply for BDR relief at studentaid.gov/borrower-defense/.