Nearly 16,000 student borrowers will have their collective debts of $415million erased after the Department of Education found their universities misled them about job prospects after graduation.
On Wednesday, February 16, the Ministry of Education announced that many of the thousands of people who have filed fraud claims against their educational institutions will receive the defense of millions of borrowers – the legal provision that guarantees relief. loans to defrauded borrowers.
Among the colleges accused of lying are DeVry University, Westwood College, ITT Technical Institute nursing program, Minnesota School of Business/Globe University criminal justice programs and Corinthian Colleges, The hill reported.
An estimated 1,800 DeVry student borrowers will receive $71.1 million in borrower defense after the DOE said the school lied about its placement rate — it claimed 90% of graduates had found a job within six months of graduation when the actual rate was around 58%.
“The Department is committed to releasing borrowers when evidence shows their colleges have violated the law and standards,” the DOE secretary said. Miguel Cardona said in a statement.
“Students rely on the sincerity of their colleges. Unfortunately, today’s results show too many cases of students being misled into loans at institutions or programs that failed to keep their promises.”