Spot College Job Scams & 
Reclaim Your Loans Through Borrower Defense

Misled about Employment Prospects? Borrower Defense Forgiveness Below!

Many colleges and universities have misrepresented their employment prospects and job placement rates. This article intends to provide clarity.

According to GAO's report of 2024 for Student Loan Relief in Cases of College Misconduct, the most common type of misconduct found was the college misrepresenting its graduates' employment prospects, including job placement rates or expected earnings.

For years, for-profit colleges have inflated job placement rates to lure students, with real placement often under 50%. (Public Agenda).

Student Loan Forgiveness for Fake Job Promises is possible if you’ve been deceived about graduate earnings or employment outcomes. Did your school lie about graduate earnings? If so, a borrower defense application will help you seek loan forgiveness.

Median annual earnings of full-time year-round workers 25 years old

Employment Prospects: Key Statistics

Inflated Placement Rates: (Public Agenda)

Satisfaction with Career Services: A significant portion of students expressed dissatisfaction with the career services offered. Approximately 40% or more felt that their institutions fell short in providing adequate career services or job placement assistance.

Perception of Degree Value: Prior to enrollment, 66% of the students were confident that obtaining a degree would significantly enhance their job prospects. However, post-graduation, only 38% felt that their degree was worth the cost, suggesting a disparity between expectations and actual employment outcomes.

Recruitment Practices: Among the 29% of the attendees who interacted with recruiters, 40% reported feeling pressured to enroll. This statistic raises concerns about the recruitment tactics employed by some for-profit institutions, which may include emphasizing optimistic employment prospects to entice potential students.

Who Profits Students’ Experiences at For-Profit Colleges

Underemployment: (Strada)

Prevalence of Underemployment: Approximately 52% of graduates are underemployed one year after graduation, with 45% remaining underemployed even a decade later.

Impact of Initial Employment: The first job post-graduation is crucial. Graduates who begin in college-level positions tend to maintain such roles, with 79% remaining in college-level jobs five years later. Conversely, 73% of those initially underemployed continue to be so after ten years.

Financial Implications: Underemployment leads to significant earnings disparities. Recent graduates in college-level jobs earn about 88% more than individuals with only a high school diploma, whereas underemployed graduates earn only about 25% more.

Influence of Degree Field: Underemployment rates vary by major. Graduates in fields like engineering and computer science experience lower underemployment rates compared to those in liberal arts or general studies.

Role of Internships: Participation in internships correlates with better employment outcomes. Graduates with internship experience are more likely to secure college-level employment shortly after graduation.

Demographic Disparities: Underemployment rates differ across demographic groups, with variations observed based on gender, race, and ethnicity.

Employment outcomes by years after graduation

Why Employment Misrepresentation Matters

When schools provide false information about employment prospects, students:

• Accumulate significant debt without a viable return on investment.
• Face career stagnation due to inadequate preparation.
• Miss opportunities to build relevant experience in competitive industries.

A Few Major Settlements Enabled by Borrower Defense

Misrepresentation of employment prospects by colleges and universities in the United States has been a significant issue, particularly among for-profit institutions. These deceptive practices often involve inflating job placement rates and exaggerating the demand for graduates, misleading prospective students about their career prospects post-graduation.

1. The Art Institutes: On May 1, 2024, President Joe Biden announced the cancellation of $6.1 billion in federal student debt for 317,000 former students of the Art Institutes, a defunct for-profit college system. This decision was based on findings that the institution had engaged in "pervasive and substantial" misrepresentations regarding graduates' employment rates, salaries, and career services. (The White House).

2. University of Phoenix: In 2019, the Federal Trade Commission (FTC) reached a $191 million settlement with the University of Phoenix over deceptive advertisements that implied collaborations and partnerships with major companies. The settlement included $50 million in cash and $141 million in student loan forgiveness for students who were harmed by the misleading claims. (Federal Trade Commission).

FTC settlement with university of Phoenix

3. Corinthian Colleges: This for-profit education company was fined $30 million by the U.S. Department of Education in 2015 for misrepresenting job placement rates at its Heald College chain. The institution provided inaccurate information about graduates’ employment outcomes, leading to its eventual closure. (Inside Higher Ed).

Heald College President Eeva Deshon at a protest in Sacramento

4. DeVry University: In 2016, DeVry faced legal action for allegedly advertising inflated employment statistics, claiming that 90% of its graduates secured jobs in their field within six months of graduation. Investigations revealed these figures were misleading, resulting in lawsuits and settlements. (Class Action).

5. Law Schools: Several law schools have been accused of inflating employment data to attract students. For instance, in 2012, multiple class-action lawsuits were filed against institutions like DePaul University College of Law and John Marshall Law School, alleging they misrepresented graduate employment rates by including temporary or non-legal positions in their statistics. (Above The Law)

Motivating Factors for Filing a Borrower Defense Application

Filing a borrower defense application can provide financial relief and justice. Key motivators include:

• Loan Forgiveness: Eliminate the burden of paying for a misleading program.
• Restored Financial Stability: Redirect your finances toward personal and professional goals.
• Empowerment: Hold institutions accountable for deceptive practices.

Steps to Initiate Your Application

1. Evaluate Your Eligibility
   • Reflect on the promises made by your school and how they influenced your enrollment.
   • Research whether your school has faced lawsuits or investigations for misrepresentation.
2. Gather Evidence:
   • Compile documentation such as enrollment agreements, marketing materials, and personal statements.
   • Reference public legal cases or regulatory findings relevant to your school.
3. Seek Expert Assistance

• Consult borrower defense specialists or attorneys for personalized guidance.
• Use official resources like the U.S. Department of Education’s Borrower Defense Page to understand requirements.

Conclusion

If your school misrepresented job placement rates, demand for graduates, relationships with employers, internships, externships, or expected earnings,  explore your options through Borrower Defense to Repayment and take the first step toward financial freedom.

Contact Us Now: using https://defenseclaims.com/contact

To see if you qualify, you can Check Your Eligibility Here: https://defenseclaims.com/check-eligibility

Want to learn more? Download Our Free eBook Here: https://defenseclaims.com/ebook-form

Legal Touch Borrower Defense

Related Articles