In this article, we explore the background, major lawsuits, and their implications, shedding light on the need for robust protections under the Borrower Defense to Repayment program.
Walden University’s $28.5M class-action settlement with students gets court approval
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 Originally enacted in 1995, BDR gained widespread attention when cases of predatory practices by for-profit colleges emerged.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.
Synopsis of Adtalem Global Education
Adtalem Global Education, the parent company of several for-profit higher education institutions including Walden University, has faced numerous legal challenges involving its schools. These challenges reveal a Recurring Pattern Of Deceptive Practices across many of its institutions. Key lawsuits and investigations include:
Walden University: Walden University has been at the center of lawsuits alleging Deceptive Recruitment Tactics and Inflated Program Costs. Many students reported unexpected tuition increases and misrepresentations about the time required to complete degree programs, further fueling legal challenges.
American University of the Caribbean School of Medicine: The American University of the Caribbean School of Medicine has faced criticism over its High Tuition Costs and lack of transparency regarding residency placements and program outcomes. Allegations of misleading information provided to prospective students have also surfaced.
Ross University Schools of Medicine and Veterinary Medicine: Ross University’s Schools of Medicine and Veterinary Medicine have encountered backlash for their High Tuition Fees and limited disclosures about program success rates. Students have also raised concerns about post graduation opportunities and financial burdens.
Chamberlain University: Chamberlain University has been scrutinized for allegations related to misleading program promises, including claims about job placement and the quality of its nursing programs. Lawsuits have pointed to discrepancies between marketing materials and actual student outcomes.
Adtalem reaches $45 million settlement deal with former DeVry students
The Genesis of Walden University
Walden University, established in 1970, initially gained recognition as a trailblazer in online education, catering to working professionals seeking flexible learning opportunities. Eventually acquired by Laureate Education Inc., a significant player in the for-profit education sector, the university's reputation began to falter. Allegations of questionable practices and growing criticism overshadowed its early successes, placing it under intense scrutiny.
Major Allegations and Lawsuits Against Walden University
Legal actions against Walden University have unveiled a troubling pattern of alleged misconduct within the institution. These lawsuits have centered around Accusations Of Misleading Students, Discriminatory Practices, and Financial Exploitation. Below, we explore the primary allegations that have shaped the university’s contentious reputation:
Misleading Marketing and Recruitment Practices: Walden has faced lawsuits alleging that it misled prospective students about the time and costs required to complete their degrees. One prominent case highlighted how the university’s doctoral programs involved additional unanticipated costs, with some students paying far more than initially advertised.
Accreditation Concerns: Allegations were raised about Walden’s accreditation claims, particularly regarding its doctoral programs. Some students alleged that the university exaggerated the value of its credentials, leading to unmet expectations in job markets.
Federal Investigations and Settlements: Aggressive recruitment methods pressured prospective students into enrolling and taking on significant debt.
Program Cost & Nature of Loans:Walden University has faced significant legal action concerning the misrepresentation of program costs, particularly in its Doctor of Business Administration (DBA) program.
Class-Action Lawsuit and Settlement (2024):
Allegations: In 2022, a class-action lawsuit was filed against Walden University, alleging that the institution misled students about the true cost and duration of its DBA program. The lawsuit claimed that Walden understated the number of credits required to complete the program, particularly during the capstone phase—a final research and writing project. Students were reportedly informed that the program would require a certain number of credits, but due to delays and additional requirements imposed during the capstone phase, many students had to enroll in extra courses, incurring additional tuition costs. This practice allegedly led to students paying significantly more than the initially quoted program cost.relmanlaw.com
Outcome: In 2024, Walden University agreed to a $28.5 million settlement to resolve these allegations. As part of the settlement, Walden also committed to enhancing transparency by providing clearer disclosures on its website regarding the median time and cost to complete the DBA program.
Walden U Will Pay $28.5 Million to Settle Claims It Deceived Black and Female Students
Key Outcomes of the Walden University Lawsuits
Walden University’s settlements included tuition refunds, cessation of deceptive marketing, and enhanced contract transparency. These measures reflected the financial and reputational toll on the university, underlining the critical need for accountability in for-profit education.
Tuition Refunds: Walden agreed to refund portions of tuition to students involved in specific lawsuits, addressing allegations of deceptive marketing practices and inflated program costs.
Revised Marketing Practices: The university committed to halting misleading advertising, ensuring that all claims about program duration and costs were transparent and accurate.
Improved Contractual Clarity: As part of its legal resolutions, Walden enhanced its student contracts, providing clear disclosures regarding program requirements, costs, and accreditation status.
Financial and Reputational Impact: These settlements underscored the significant financial and reputational damage suffered by Walden, highlighting the importance of accountability in for-profit education.
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
Why Use Us?
Don’t let school misrepresentation and lies ruin your future. Here’s how to get started:
Walden University’s legal challenges shine a spotlight on systemic problems plaguing the for-profit education sector. As more students and regulators expose deceptive practices, the call for greater transparency and accountability grows louder. For prospective Borrower Defense Applicants, these cases emphasize the importance of standing up against Unfair Practices. Stronger protections and stricter regulatory enforcement are crucial to safeguard students’ futures and prevent further exploitation within higher education.
