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Student borrowers are keeping the pressure up in 2022 | Blog
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Student borrowers are keeping the pressure up in 2022 | Blog

In just three months of 2022, we’ve seen notable progress in the fight towards holding predatory for-profit colleges and those who enable them accountable. From a scathing report detailing ITT’s decades of wrongdoing, to students in Sweet v. Cardona calling out the growing borrower defense backlog, borrowers are not letting up and keeping the pressure on the Education Department’s arbitrarily long and winding road to justice.

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Lawsuit Against Student Loan Giant Navient Will Test Limits of Private Debt Discharge | Yahoo Finance

A former student at the now-defunct ITT Technical Institute and his mother are suing student loan giant Navient (NAVI) over the company’s refusal to cancel his private student loans despite the U.S. government erasing thousands of federal student loans related to the notorious for-profit school. The case could set a precedent for defrauded borrowers seeking relief from privately-held loans (as opposed to federally-backed loans).

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Scammed Student Sues Navient, Asking for Cancellation of Debt he Took on to Attend For-Profit College | MarketWatch

For roughly a decade, Jorge Villalba has been contending with student debt that he believes — and the government has confirmed — he was illegally misled into borrowing. Villalba, 39, attended ITT Technical Institutes, a major for-profit college chain, from 2006 to 2010. Just six years after he graduated, ITT filed for bankruptcy, amid allegations the school used misleading job placement and graduation rates to convince students to sign up for classes and take on the loans that would pay for them.

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Trump Administration’s Handling of Stalled Student Debt Relief Claims Threatens Proposed Settlement | Washington Post

A proposed court settlement between the Trump administration and defrauded borrowers is in jeopardy after the administration revealed its widespread denials of requests for student debt cancellation. Ninety-four percent of the debt relief claims the Education Department has processed since reaching the agreement in April have been rejected, the department said in a court filing last week. The federal agency issued 78,400 decisions, of which 4,400 were approved and the remainder denied.

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