The U.S. government, through the U.S. Department of Education (DOE), has demonstrated a strong commitment to students who have fallen victim to unscrupulous secondary education institutions and accumulated a large federal student loan debt with little or no benefit from the degrees or certificates they received. This large and ever-expanding group of individuals has experienced frustration and confusion with the process of obtaining assistance with, and abatement from, the fraudulently acquired debt.
During the Obama administration, aggressive action was taken to address fraudulent, illegal and abusive practices in higher education that led to students finding out the degrees they worked so hard for — and incurred student loan debt to obtain — are not as valuable as they were led to believe by the degree-granting institution. Many graduates in this position are now saddled with student loan debt that exceeds their real-world earning ability to reasonably repay.
The DOE has worked diligently to ensure defrauded students have access to a defense claims review process that’s fair, transparent, and efficient — and poorly performing or predatory education institutions can no longer take advantage of students. Working with the FTC, they have identified numerous institutions that have taken unfair, and in some instances, illegal advantage of students and stated that these students now have a clear path to student loan forgiveness.
"When Americans invest their time, money and effort to gain new skills, they have a right to expect they'll get an education that leads to a better life for them and their families... we will continue to take action to protect students and taxpayers from unscrupulous companies trying to profit off of students who simply want to better their lives." U.S. Education Secretary, John B. King Jr.
Sadly, though, many students who are qualified for federal student loan assistance or forgiveness are not aware of their options or have difficulty navigating the federal defense claims process.
So, assistance is available for many defrauded students or graduates. Unfortunately, the defense claims process can be exasperating and confusing — requiring time and patience many don't have. If you’re fed up, confused, or just don’t have the time and patience to pursue your claim, the assistance of an attorney specializing in student loan debt law may be beneficial.
If you feel you were defrauded and incurred federal student loan debt, it's time to find out if you're eligible for loan relief. We will continue to follow this issue and post new information as it becomes available to help those who were defrauded by postsecondary institutions. Call us, the San Diego Student Loan Lawyer, at (619) 295-3322 for a free initial consultation.