Justice was served to more than 160,000 students recently as a federal judge ruled that their student loans would be forgiven. This ruling is in direct relation to the Obama administration's enactment of the “Borrower’s Defence Rule.” The law actively protects students that are defrauded by schools.
In the case of the 160,000 students with no more student debt, the schools these students attended closed, actively sought additional tuition funds during studies, were privately owned for-profit schools, and promised to help with job search and security post-graduation but were unable to follow through on this promise -- in one case, a student earning an Associate’s Degree graduated with more than $90,000 worth of debt for a two-year program.
Before the Obama administration could enact the law, a private for-profit group blocked the proceedings with a lawsuit claiming that student loans were outside of the government’s sector. That suit was overturned today.
If your school has closed of you believe that you have been defrauded in other ways, you can visit this government website to obtain additional information -- albeit, the site isn't precise and clear on how to file. You can also contact our offices for more information and to make sure that you do not have to pay hefty student loan fees for a school that has closed or has acted illegally in other ways.
This is a big win for students that have been struggling with debt unlawfully. We would love to hear your thoughts s on this matter.