Three for-profit colleges have appealed to block the student loan settlements for 200,000 borrowers. The students applied for loan settlements because they believed their schools have misled them.
Three for-profit colleges have appealed to block the student loan settlements for 200,000 borrowers. The for-profit colleges in question were Lincoln Educational Services Corporation, Everglades College Incorporation, and American National University. The settlement was supposed to be intended to cancel over $6 billion in student loans. Reportedly, the students have applied for the settlements because they believed that their schools have misled them. The notice to appeal to block the student loan settlements was announced in June 2022. In November, it was approved by the Education Department, as reported by Lee.
Disagreements on the Appeal
According to Lee, the appeal is yet another obstacle for students who were burdened with loans. Advocates of student borrowers label this as the predatory lending practices by for-profit schools. The director of the Project on Predatory Student Lending Eileen Connor also stated that the appeal reveals how serious the schools are in denying justice to the borrowers. Nonetheless, Connor said that the court’s decision to approve the settlement is absolute. She is also reportedly confident that the Ninth Circuit will agree that the appeal to block the settlement is without merit.
The settlement involved more than 100 schools. It also resolved a lawsuit filed by Theresa Sweet against Betsy DeVos, the U.S. Secretary of Education of the Trump administration. According to the lawsuit, DeVos consistently denied the borrowers of defense applications. The plaintiffs were represented by the Housing & Economic Rights Advocates (HERA) and the Project on Predatory Student Lending (PPSL).