The Legal Legacy of Westwood College

Lawsuits, Settlements, and Borrower Defense Implications

Westwood College, a for-profit institution that promised career focused education, became a symbol of predatory practices in higher education. Its operations have been marred by lawsuits, investigations, and settlements, including a $1.5 billion federal student loan forgiveness initiative, culminating in its closure.

This article delves into the legal actions against Westwood College, their significance for affected students, and the role of Borrower Defense to Repayment in providing relief.

Biden Admin Cancels $1.5B in Debt for Westwood College Students

The Background of Borrower Defense to Repayment

Borrower Defense to Repayment is a federal student loan forgiveness provision that allows borrowers to have their debts discharged if they were misled by their educational institution. Originally enacted in 1995, BDR gained widespread attention when cases of predatory practices by for-profit colleges emerged. Students duped by Fraudulent Claims Of High Job Placement Rates and Promising Careers After Graduation found recourse in Borrower Defense, paving the way for significant settlements and legal reforms.

The Genesis of the Westwood College Lawsuits

Westwood College faced mounting scrutiny starting in the early 2000s. Accusations ranged from Deceptive Advertising to misrepresenting job placement rates. Students alleged they were lured by promises of high paying jobs and marketable degrees, only to find themselves burdened with debt and limited career prospects.

Westwood College has faced legal actions concerning both the misrepresentation of program costs and the nature of loans offered to students.

Misrepresentation of Program Costs

Illinois Attorney General Lawsuit and Settlement (2015)

• Allegations: The Illinois Attorney General filed a lawsuit against Westwood College, alleging that the institution misled students about the total cost of its criminal justice program. Specifically, the college was accused of failing to provide accurate information about financial aid and charging students exorbitant interest rates, sometimes as high as 18%, through its institutional financing program.  vetsedsuccess.org
• Outcome: Westwood College agreed to forgive $15 million in loans owed by former criminal justice students who used the college's institutional financing program. This settlement aimed to alleviate the financial burden on affected students resulting from the misrepresented program costs.  abc7chicago.com

Misrepresentation of Nature of Loans

Colorado Attorney General Settlement (2012)

• Allegations: The Colorado Attorney General investigated Westwood College for deceptive practices related to its financing programs. The investigation revealed that Westwood failed to follow Colorado's state financing laws and charged improper financing fees to students. Additionally, the college was found to have misled students about their financial aid, leading them to incur unexpected debt. vetsedsuccess.org
• Outcome: Westwood College settled the lawsuit by agreeing to pay $2 million to the state and credit $2.5 million toward restitution for students who financed their tuition through the school's institutional financing program. This settlement addressed the misrepresentation of loan terms and the financial impact on students.

Former Westwood College students get federal debt canceled

Major Lawsuits and Settlements

Against Westwood College

Westwood College’s legal challenges resulted in significant settlements and federal actions, highlighting systemic issues within for-profit education. These actions included Substantial Financial Penalties and widespread Student Loan Forgiveness Programs. Major settlements include:

• Federal Student Loan Forgiveness: In 2022, the U.S. Department of Education announced loan forgiveness for borrowers defrauded by Westwood College, totaling $1.5 billion.
• $107 Million Settlement for Colorado Borrowers (2022): Westwood College reached a settlement with the Colorado Attorney General, resulting in $107 million in federal student loan forgiveness for Colorado borrowers impacted by the institution's misleading practices.

Major Allegations Against Westwood College

Several allegations highlighted Westwood College’s unethical practices, ranging from Misrepresentation of Job Placement Rates and Accreditation to Aggressive Recruitment Tactics and Exorbitant Tuition Fees. These unethical practices formed the basis of multiple lawsuits and student grievances over the years.

• Misleading Job Placement Rates: Lawsuits alleged Westwood inflated employment statistics to entice enrollment.
• Accreditation Misrepresentation: Claims arose that Westwood’s degrees were portrayed as regionally accredited, which was not the case.
• Excessive Tuition Costs: The college charged exorbitant fees compared to other institutions offering similar programs.
• Aggressive Recruiting Tactics: Students reported relentless pressure from recruiters, sometimes using misleading information.

Westwood College Student Loan Forgiveness and Lawsuit

Key Impacts of Westwood College Lawsuits

The lawsuits against Westwood College sent shockwaves through the for-profit education sector, revealing widespread unethical practices and systemic issues. These legal actions underscored significant challenges faced by affected students and highlighted areas for policy improvement. Key outcomes include:

• The Prevalence of Predatory Practices: Westwood College exemplified the predatory tactics common among for-profit institutions, such as deceptive marketing and inflated claims.
• The Financial Hardships on Students: Many students were left with insurmountable debt and limited career prospects, prompting federal interventions.
• The Necessity of Regulatory Oversight: These cases emphasized the critical need for stringent regulations and accountability to protect future students from similar exploitation.

Closure and Bankruptcy of Westwood College

Westwood College ceased operations in 2016 amid declining enrollment, mounting legal costs, and reputational damage. The closure left thousands of students grappling with unfinished degrees and uncertain futures, further emphasizing the need for Borrower Defense provisions.

• Regulatory Scrutiny: Increased oversight from federal and state agencies revealed widespread noncompliance and unethical practices.
• Fraudulent Practices Lawsuits: Legal actions related to deceptive marketing and misrepresentation of job prospects further eroded the institution’s credibility.
• Accreditation Withdrawal: Loss of accreditation led to diminished student enrollment and a tarnished reputation.

Education Department cancels $1.5 billion in student debt for 79,000

borrowers subjected to ‘false promises’ by Westwood College

Common Reasons for Borrower Defense Claim Denials

• Insufficient Evidence: Failing to provide adequate documentation or proof of the school’s misconduct can result in claim denial. Learn why to use attorney-owned professional help.
• Missed Deadlines: Submitting an application after the deadline or failing to adhere to filing timelines can disqualify claims.  Contact Legal Touch Borrower Defense to meet deadlines.
• Ineligible Claims: Applications that do not clearly demonstrate how the school’s actions violated borrower protections may be rejected. Check your eligibility today.
• Lack of Specificity: General complaints without detailed examples of misrepresentation or fraud are less likely to be approved. Download our free eBook for help.
• School Not Found Guilty: Claims related to institutions not proven to engage in deceptive practices or fraud are often denied. Contact focused consultants immediately.

Borrower Defense to Repayment: Your Path to Justice

If your school misrepresented itself, leaving you burdened with significant debt, the Borrower Defense to Repayment program offers a pathway to justice. Filing a Borrower Defense application, you can seek financial relief and ensure institutions are held accountable. Here are the key reasons to consider taking action:

1. Loan Forgiveness: Erase student loans linked to fraudulent school promises and deceptive practices.
2. Financial Freedom: Regain control over your finances.
3. Accountability: Ensure deceptive institutions are held responsible.
4. Future Opportunities: Free yourself to pursue further education or a new career path. 
5. Access to Additional Support: Engage with experts and resources to strengthen your case.

Take Action Today

Why Use Us?

Don’t let school misrepresentation and lies ruin your future. Here’s how to get started:

• Check Eligibility: Visit defenseclaims.com/check-eligibility
• Get Help: Reach out to experts at defenseclaims.com/contact
• Learn More: Download our free eBook at defenseclaims.com/ebook-form

Conclusion

The legal battles against Westwood College serve as a powerful reminder of the consequences of Institutional Misconduct In Higher Education. For defrauded students, these cases offer a pathway to justice through Borrower Defense to Repayment, providing relief from crippling debt. They also emphasize the critical importance of transparency and accountability, ensuring future students can make informed decisions and pursue education without fear of exploitation.

If you believe you’re eligible for relief, take immediate steps to check your eligibility and consult trusted resources for guidance.

Stay informed and proactive—relief may be closer than you think.

Legal Touch Borrower Defense