Getting Federal Student Loan Relief for College Fraud

stu loan_0Some for-profit schools have misrepresented what they truly offer their students and have engaged in high-pressure sales tactics to encourage enrollment in their programs. While most schools follow the rules, many have been investigated for aggressive recruiting practices, misuse of federal student aid, and high student loan default rates.

For-profit schools often use high-pressure sales tactics to convince students to enroll in their programs. Promising fancy job titles and high salaries, students are encouraged to sign up after being misled and lied to about program outcomes and job placement.

Many students of schools with these aggressive recruiting practices never graduate or find gainful employment as a result of the education they received and end up in default on their student loans. So what can you do if you are one these unfortunate victims of fraud and unfair business practices?

Under the law, a student loan borrower may have a defense to repayment and have their loans forgiven if their school committed fraud or broke laws. A team of lawyers for the Department of Education’s independent monitor is currently reviewing debt relief submissions for students alleging they were lied to or misled by their schools. The Education Department is willing to grant student loan borrowers relief where the “facts and law are clear.”

The government is already erasing $100 million of debt for more than 7,000 former students of the Corinthian. 5,800 former students who filed “closed school” claims will see $75 million of their debt discharged. The Education Department has also approved a second wave of loan forgiveness submissions based on the so called “borrower’s defense” covering $28 million for 1,300 former students from Corinthian’s Heald College.

But that represents a tiny fraction of the federal debt-forgiveness program that could run well into the billions of dollars. The total outstanding amount of student loans is approx. $1.3 trillion and nearly $150 billion dollars of that is 90+ days delinquent or in default.

Corinthian was once one of the largest for-profit college chains until it collapsed amid fraud allegations. While it was one of the largest for-profit colleges to be accused of fraud, it is far from the only one.

There are thousands more student loan borrowers across the country who now deserve the same relief under the law. Colleges like ITT Tech, DeVry University, University of Phoenix, Ashford University, and Kaplan University have all been under government investigation for deceptive advertising and promotion tactics involving graduation and job rates.

Financing a college education and building a career in today’s world is hard enough. You shouldn’t have your life devastated by fraudulent and unfair sales practices that prey on your hopes for a career.

And the Department of Education agrees. If you’ve been cheated by your school out of getting your degree, are unable to find a job, and are saddled with tens of thousands of dollars in student loans, you can get help. Start by visiting the Department of Education website at

4 thoughts on “Getting Federal Student Loan Relief for College Fraud

  1. Seems some of us defrauded by the for profits are still left to fend for ourselves. Is there any legal representation on behalf of the victim available? Someone who can help put together a case and present it to the DoE and help make a legal argument to have the loans dealt with. All I see are sites with vauge information,only leading to other sites with vauge information, to again lead to another site with only vague information. This sucks! There are people out here who need help who were screwed over by a shady school and trapped in debt with credentials that employers only laugh at and toss in the trash.


    1. Yes, I have found the same thing… vague and unhelpful sites leading to nothing. It seems everyone agrees that many students have been victims of fraud, but no one has stepped up to offer us help!


  2. I need someone to contact me about help susing Kaplan. I am 300k in debt with a bachelor in psych I can’t use and almost completed my masters too but have found out only 2 of my courses are eligible to transfer!! My cell is 2703396886


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