11/13/2023 0 Comments Loan forgiveness university of phoenix![]() ![]() When TCF analyzed the new data, it found a disproportionate concentration of predatory behavior among for-profit colleges. 2 The data represents the first-ever public record of the number of claims students have filed against each and every higher education institution in the country. Now, in response to a Freedom of Information Act (FOIA) request from TCF, the Department of Education has provided information that sorts all 98,868 borrower defense claims received as of August 15, 2017, by school. While the department previously has revealed small amounts of information on borrower defense complaints, including the number of claims that are pending and that have been approved, the government has never before released a comprehensive list of schools accused of predatory behavior. Department of Education about nearly 100,000 “borrower defense claims”-applications for loan relief from students who maintain that they have been defrauded or misled by federally approved colleges and universities. The Century Foundation (TCF) has obtained new data from the U.S. Instead of implementing a new process developed in 2016 along with rules to prevent further abuses, the Department of Education is going back to the drawing board.The Department of Education currently has a backlog of 87,000 unreviewed borrower defense claims.The schools with the most complaints are known bad actors with records that include multiple investigations and lawsuits for deceptive and predatory practices. ![]() The Century Foundation reviewed data on 98,868 “borrower defense claims” filed with the Department of Education and found 98.6 percent of them were from students saying they were misled by for-profit schools.8Additional Data Sources, by Publication Date.5The Need to Maintain Effective Guidelines to Protect Students.4The Backlog in Processing 87,000 Borrower Defense Claims.2Why Would a Former Student Pursue Borrower Defense?.1The Rising Tide of Borrower Defense Complaints.Manning wrote that those borrowers “could have their forbearances extended if their applications are still pending. And while most borrowers are given a grace period from their loan payments while they wait, the department said it has expired for “fewer than 50 borrowers” and that “these are exceptions.” But over the next six months, the period is set to expire for 31,000 borrowers. Information is provided upon request.”īorrowers who are awaiting a decision from the department have continued to accrue loan interest, which the department revealed amounts to $143 million. The letter from Manning says that while the department “is in the process of establishing reports including borrower defense information, there are currently no regularly produced reports provided to senior officials. Since then, the department has released little information about its progress, and questions sent to a spokeswoman have gone unanswered.Įven top officials in the department aren’t being briefed on the progress, according to the records sent to Durbin. ![]() DeVos called it “a muddled process that’s unfair to students and schools.” In June, Education Secretary Betsy DeVos said that “promises made to students under the current rule will be promises kept” and added that her office was working to discharge more than 16,000 loans that were previously approved to be erased under Obama.īut in the same announcement, DeVos unveiled plans to rewrite an Obama-era regulation known as the borrower defense to repayment rule, which aimed to quicken the path to loan forgiveness when schools commit fraud, and to hold those schools financially responsible. Many advocacy groups and some Democrats in Congress have urged the department to clear the backlog, saying the delay has left thousands of borrowers strapped with debt that’s eligible to be erased under existing federal rules. Although most come from Corinthian and ITT students, others are from people who attended schools that are still in operation, including DeVry University and the University of Phoenix. ![]() Overall, the department said there are more than 65,000 pending claims for relief. The number of new applications is likely to swell even further, experts say, amid a campaign by many state attorneys general to notify students who might be eligible for loan relief. ![]()
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