You’ve been waiting for student loan forgiveness, even though they qualified 6 years ago.
Here’s what you need to know – and what it means for your student loans.
A group of student borrowers filed a new, major lawsuit against the US Department of Education, claiming they did it wait six years get student loan forgiveness.
Student loan forgiveness: the allegations
- In November 2016, the Illinois Attorney General filed a defense-against-rebate group loan application with the US Department of Education on behalf of cheated students enrolled in Westwood College of Illinois’ criminal justice program.
- Defending the borrower against repayment is a strategy to get student loan forgiveness on your federal student loans if your college or university has closed or misled you.
- After filing the group application, the state of Illinois and Westwood agreed to terminate institutional student loans. However, the settlement did not include federal student loans held by the US Department of Education.
- Student loan borrowers claim that they qualify for student loan discharge.
- However, the Department of Education has never authorized student loan borrowers’ defenses against repayment requests, which has harmed hundreds or thousands of student loan borrowers who should have received student loan forgiveness.
- These student loan borrowers are seeking full student loan forgiveness of their federal student loans through student loan relief.
“For nearly six years, the department has administratively backed away from its obligations, leaving countless borrowers uncertain as to whether or when they will receive the relief they are entitled to under federal law,” said Eric Rothschild, trial director for student defense. “The Department has everything it takes to free borrowers from financial limbo and give them a well-deserved fresh start. It is time they acted on it.”
Cancellation of Student Loans: The Department of Education has canceled some student loans
The Department of Education has approved at least some student loan cancellations for student loan borrowers who participated in Westwood. For example, the Education System approved $53 million in student loan cancellations for 1,600 student borrowers who attended Westwood. From 2002 until its closure in 2015, the Department of Education found that all Westwood campuses made widespread misstatements about students’ ability to transfer credits to other colleges and universities. From 2004 to 2015, the Department of Education found that Westwood made significant misrepresentations to students that his criminal justice program would lead to police officer careers in Illinois, particularly Chicago. However, the Chicago Police Department did not accept Westwood credits in their hiring process.
“Westwood tricked students into entering its criminal justice program by misleading them about their chances of finding police officer employment after graduation,” said Illinois Attorney General Kwame Raoul. “I call on the Department of Education to provide equitable relief to students who have taken out good faith federal loans with the expectation of receiving reasonable opportunities for a law enforcement career.”
How to Get Student Loan Forgiveness Through Borrower Defense for Repayment
President Joe Biden has canceled more than $17 billion in student loans since taking office. That includes $2.1 billion in student loan cancellations for 132,000 student loan borrowers, which borrowers are defending until repayment. To apply for the borrower defense, contact your student loan administrator or apply directly online. To qualify for student loan forgiveness, your college or university must be closed during your enrollment or shortly after your de-enrollment. Alternatively, your college or university must have unlawfully misled you.
With the looming resumption of government student loans, it is imperative that you educate yourself about your student loan repayment options. There are many options, including student loan forgiveness. Here are some ways student loan borrowers pay off student loans and save money: