CollegeAmerica Borrower Defense to Repayment 
What You Need to Know

If you attended CollegeAmerica, you may qualify for full federal student loan forgiveness through the Borrower Defense to Repayment (BDR) program. This is especially true if you were misled about job prospects, program quality, or total cost—allegations that have been legally proven against this school.

CollegeAmerica's Legal Trouble: Proven Fraud

CollegeAmerica was part of the Center for Excellence in Higher Education (CEHE), which also owned Stevens-Henager College and Independence University. In August 2020, a Colorado District Court ruled that CollegeAmerica committed consumer fraud by systematically misrepresenting:

• Employment rates of graduates
• Income expectations for career paths
• Transferability of credits
• Accreditation and program quality

The Colorado Attorney General filed the original lawsuit in 2014, and the final judgment required $3 million in restitution, plus injunctive relief banning CollegeAmerica from engaging in further deceptive conduct.

In addition, CollegeAmerica was cited by the U.S. Department of Education and multiple state agencies for violating Title IV funding rules, making them a key target in Borrower Defense cases.

The School Has Closed – But You Can Still Act

CollegeAmerica campuses are no longer enrolling students, and the brand has essentially shut down after years of legal action. But even if your school is closed, you can still pursue Borrower Defense or Closed School Discharge, depending on your situation.

The Sweet v. Cardona class action settlement—finalized in 2022—also included CollegeAmerica, making it easier for some borrowers to obtain relief without needing further proof. However, a formal BDR application is still encouraged, especially if you haven’t already received loan cancellation.

Common Grounds for a Borrower Defense Claim

If any of the following happened to you while attending CollegeAmerica, you likely have a strong case:

• You were told you’d earn much more than is typical in your field
• You were promised job placement assistance that never happened
• Your credits wouldn’t transfer anywhere else
• You were enrolled in a program that was never going to lead to licensure
• You were rushed into signing loan documents without proper disclosure

Borrower Defense isn’t just about bad outcomes—it’s about whether your school misled you. And in CollegeAmerica’s case, the evidence is overwhelming. Check your eligibility for FREE now!

Want to File It Yourself? We Got You

Check out our easy-to-follow Do-It-Yourself Borrower Defense Guide — designed for anyone to understand, even if you’ve never dealt with legal forms before.

Want to See Similar Schools?

If you attended any of the schools listed here, you may be eligible for Borrower Defense. Link your experience to one of these deep dive articles:

1. American Intercontinental University Under Fire
2. Sanford-Brown’s Legal Turmoil
3. Lincoln Educational Services Legal Battles
4. University of Phoenix  and Corinthian Colleges  Lawsuits
5. ITT Technical Institute’s Legal Turmoil
6. DeVry Scandals
7. The Legal Legacy of Westwood College
   and many more …

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