Former Sanford-Brown building put into receivership after $10 million default
The Background of Borrower Defense to Repayment
Borrower Defense to Repayment is a federal policy designed to protect student borrowers from fraudulent or deceptive practices by educational institutions. It allows students to Seek Loan Forgiveness if their school misled them or violated applicable laws. This policy gained prominence as lawsuits against institutions like Sanford–Brown revealed widespread fraud and predatory practices. Borrowers affected by these practices may qualify for loan forgiveness by proving the school misled them.
The Genesis of the Career Education Corporation Lawsuits
49 Attorneys General Announce Half Billion Dollar Multistate Settlement with For-Profit Education Company
Major Lawsuits Against Sanford–Brown
Several high profile lawsuits targeted Sanford–Brown, including:
Multistate Attorney General Settlement: In January 2019, CEC agreed to a settlement with 49 state attorneys general, resulting in $493.7 million in debt relief for approximately 179,529 students nationwide. This settlement addressed allegations of deceptive practices, including misleading prospective students about job placement rates and program accreditation.
Federal Trade Commission(FTC) Settlement: In August 2019, the FTC filed a complaint against CEC for using sales leads from companies that employed deceptive tactics to collect individuals' contact information. CEC utilized this information to make high pressure sales calls to market its schools, including Sanford–Brown. CEC was ordered to pay $30 million to settle these charges.
Allegations: In this lawsuit, the plaintiff, a former student of Sanford-Brown College, alleged that the institution misled her regarding financial aid. She claimed that she was encouraged to finance her education through a combination of personal funds, federal grants, and loans. The plaintiff asserted that Sanford-Brown misrepresented the availability and terms of these financial aid options, leading her to incur unexpected debt. Outcome: The case provides an example of allegations where Sanford-Brown misrepresented the nature of loans and financial aid, resulting in students taking on more debt than anticipated.
Key Outcomes and Impact of the Sanford–Brown Lawsuits
The lawsuits resulted in significant consequences:
Debt Forgiveness: Over $493 million in student debt relief was provided to students deceived by Sanford–Brown’s false promises.
Policy Revisions: Federal regulations for for-profit colleges became stricter, including enhanced oversight of job placement claims.
Institutional Accountability: Sanford–Brown’s lawsuits underscored the importance of holding for-profit institutions accountable for fraudulent practices.
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:
Loan Forgiveness: Erase student loans linked to fraudulent school promises and deceptive practices.
Financial Freedom: Regain control over your finances.
Accountability: Ensure deceptive institutions are held responsible.
Future Opportunities: Free yourself to pursue further education or a new career path.
Access to Additional Support: Engage with experts and resources to strengthen your case.
Take Action Today
Don’t let school misrepresentation and lies ruin your future. Here’s how to get started:
Sanford–Brown’s legacy highlights the devastating impact of deceptive practices in for-profit education. For students burdened by debt and broken promises, Borrower Defense to Repayment offers a Pathway to Justice and Financial Relief. The ongoing vigilance of regulators, combined with borrower advocacy, is essential to prevent similar abuses in the future.
