Project on Predatory Student Lending

Student Loan Truth: Jessica’s Art Institute Story

Jessica is a plaintiff in the lawsuit Sweet v DeVos, in which she and six other former for-profit college students are suing the U.S. Department of Education and Secretary Betsy DeVos, seeking to force the agency to follow the law and issue the debt relief to which the former students are entitled. The plaintiffs are suing on behalf of more than 158,000 former students who have filed applications for borrower defense to repayment because their schools cheated them.

How did you hear about New England Institute of Art (NEIA)?

After getting my associates degree at Mount Wachusett Community College, I really wanted to continue my education. I was the only person in my immediate family to go to college and it was important for me to keep going. At Mt. Wachusett, I relied on my advisors all the time, so I was expecting a similar experience at NEIA. I trusted Art Institute advisors to help me make the right decisions for my education.

What made you decide to attend NEIA?

I really wanted to be visual effects video editor. When I contacted NEIA, I was told their Media Arts and Animation program would prepare me for a career in visual effects, even though they advertised the program as focused solely on gaming and animation. The advisors told me their program was difficult to get into, but that graduates were highly sought after in their fields. They created a lot of pressure and a sense of urgency for me to apply right away. I didn’t find out until much later that none of this was true.

What did the school tell you about getting a job after the program?

During the whole process, NEIA consistently claimed they had the connections I would need to get a job in the industry. They said the name of the school carried weight in the visual effects industry and it would be easy to find a job. I went on a tour and they made a big deal about having a high tech green screen that students would be able to use. Later on, as a student, I learned that we weren’t actually allowed to use the green screen. Instead, they had us tape green paper to the wall to film our projects.

What was your experience like once you started attending New England Institute of Art?

Everything I was promised was a lie, just like the green screen. I was told that I’d be using state-of-the-art technology in class, but instead, we were either given old and obsolete equipment or we had to make our own. The classes were a joke.

Did your experience at this school help you obtain a job in the field you studied?

Part of their pitch to get me to go to NEIA was how great their connections to the industry were. However, the reality when I got there was the exact opposite of what I had been told. When I reached out to the Career Services Office about getting an internship in visual effects, I was either given no response or a link to Craigslist with a document entitled “Tips for Applying to a Job from Craigslist”. I never found a permanent job in the field. People wouldn’t hire me because of my degree. I’m currently working on my own small business.

Did going to New England Institute of Art make your life better or worse?

It made my life significantly worse. My credit is destroyed, I can’t get a car or a house. My mental health has suffered. I refuse to get married because I’m afraid of associating my partner with my debt. I debated not having kids at all. My life has been placed on hold. It’s devastating.

How long have you been waiting for an answer on your Borrower Defense application?

I filed for Borrower Defense to Repayment in 2015. Four years later, I still don’t have an answer. Just radio silence. The debt is bad enough, and then adding even more uncertainty from not getting an answer is devastating. I can’t plan for my future.

Some policy-makers doubt that for-profit colleges are a problem – what would you say to them?

I would tell them that despite putting in the time and effort at school, the degree that NEIA gave me is useless. I can’t get a job because companies don’t trust the school. I can’t go back to school because other schools don’t recognize my NEIA degree. A bank wouldn’t give me a loan to further my education if I asked.

The Department of Education has refused to cancel the loans of thousands of former students of for-profit colleges. They ignore the many thousands of students who filed for borrower defense. What would you say to them about the need to cancel these loans?

It’s their job to do the right thing. I’m beyond disappointed about the fact that the government isn’t doing anything to stop these schools from defrauding students in the first place. Students should be able to trust their schools and advisors. The fact that there is no protection for a vulnerable 21 year old signing a loan for the first time and being taken advantage of isn’t fair or responsible. You shouldn’t need a lawyer to be able to go to colle

My Student Loan Truth: Theresa’s Brooks Institute Story

When Theresa graduated from the Brooks Institute in 2006, she never imagined that she would find herself suing the U.S. Department of Education years later over her student loan debt. But after being cheated by her school and years of waiting for answers, she is a plaintiff in Sweet v DeVos – representing over 158,000 students who were cheated by their schools and have been ignored by Betsy DeVos and the U.S. Department of Education. This is her story.

 

My name is Theresa Sweet.

On the day I graduated from college, my fellow students and I were lined up in a cordoned off area, under the perfect Santa Barbara sun, waiting to enter the theater and accept our diplomas. Myself and several other students turned our heads toward a commotion beyond the ropes only to see an exasperated administrator tailing my father, sternly telling him that he needed to wait until after the ceremony to speak with his student. My mounting concern quickly turned to laughter when he hurried over, gave me a quick hug, and said, “I just wanted to tell you again how proud I am of you.” That moment remains among a literal handful of times in my life that I ever saw my father cry.

While The Brooks Institute (then owned by Career Education Corporation) is no longer in operation, I know that there are plenty of predatory, for profit trade schools still operating in California today. I am here today to share my story in the hope that I can prevent others from living through a similar experience.

I attended the Brooks Institute of Photography in Santa Barbara and Ventura, CA from January 2003 to June 2006, graduating with a Bachelor of Arts in Professional Photography. Once a source of pride, my education quickly became a ruinous source of personal and financial stress.

Since graduation, I have never had a job where I used the education I received at Brooks. I have never had a job that has helped me earn an income that is remotely close to what is necessary to pay off these loans. I can’t finance a car, much less a home. It is unlikely that I will ever be able to marry or adopt children as I would essentially be condemning my family to a lifetime of poverty.

I currently work as a Certified Nursing Assistant, and I would love to be able to further my education and obtain a Nursing degree. Unfortunately, Brooks, like so many other for-profits, actively misled students as to the transferability of the course credits they earned. In addition, Brooks also made sure to guide students to borrow the maximum amount of Federal Student Loans allowed in pursuit of a Bachelor’s Degree, making me ineligible for student loans and financial aid to pursue nursing.

Brooks used unethical, high pressure sales tactics such as pain points about me being the first person in my immediate family to attend and graduate from college. They relied on the fact that there was no one in my life who could help me ask the right questions. They made a point of never answering questions via email, only over the phone. They created the false impression that the admissions process was competitive when, in fact, all they cared about what getting the maximum number of students enrolled and filling out student loans applications. In reality, Brooks admitted anyone with a high school diploma or a GED, as long as that person could get a student loan.

Although I had no way of knowing it at the time, after I graduated I found out that the “Admissions Counselors” were just commissioned sales people. They weren’t paid to give me accurate information about the school, to tell me how much it could cost me, or to counsel me on whether the school would help me reach my goals. They were only paid to get me to enroll.

After graduation, the “Career Services” office regularly contacted me with financially meaningless opportunities for unpaid jobs that they found on the local Craigslist page.

Perhaps worst of all, Admissions Counselors blatantly lied about the employment rates of students after graduation as well as the amount of money these graduates were making, knowing that the lies they were telling were giving students false impression that they would be able to pay back their student loans. You wouldn’t have to look very hard to find evidence of all of this.

In short, while I worked multiple jobs to stay at school, Brooks and CEC were happily raking profits by defrauding thousands of students. And NO ONE was stopping them. No one was alerting the public or prospective students. No one was there to help any of us recoup our financial losses, to say nothing of the disastrous effect this high level of debt has on personal relationships.

If this seems outrageous to you, GOOD! It is outrageous, and it isn’t hyperbole. There are hundreds of former Brooks Students who have already filed Borrowers Defense to Repayment claims, and that number is sure to grow. I filed my own paperwork in 2016. I’ve been waiting for a response for three years. It is one of 158,110 applications that sits at the Department of Education unanswered right now.

The Department of Education is determined to sit on their hands, doing nothing to help. So us students have been forced to turn to the courts for justice. We are done waiting.

 

By Theresa Sweet

 

Learn more about the lawsuit Sweet v DeVos

Servicers Are Wrongly Denying Closed School Discharges to Art Institute of Phoenix Students. Why?

In December 2018, scores of Art Institute campuses closed their doors. Before the closure, students got three options: (1) transfer to another Art Institute campus to complete their degree, (2) participate in a teach-out at a different school to complete their degree, or (3) request a closed school discharge of their federal student loans. Borrowers are eligible for a closed school discharge as long as they didn’t complete their program or transfer credits to a comparable program and were enrolled within 120 days of the schools’ closure date—in this case, December 14, 2018.

Students who wanted to discharge their loans—and move on with their lives—had a plan. That is, until some students tried applying for a closed school discharge.

Some Art Institute of Phoenix students who were enrolled in the school within 120 days of the school’s closure have reported that their servicers are denying their application for a closed school discharge. The servicers have claimed that, because the Art Institute of Las Vegas remains open, Art Institute of Phoenix students are ineligible for a closed school discharge.

One student received the following response from their servicer:

Our records indicate that the main campus of ART INSTITUTE OF PHOENIX, also known as formally known as ART INSTITUTE OF LAS VEGAS remains open. As the main campus is still open, you do not qualify for School Closure discharge. If the main campus has in fact closed, you must provide proof. Proof must be on school letterhead.

This is wrong. The Art Institute of Phoenix was a “branch campus” of the Art Institute of Las Vegas, but just because Art Institute Las Vegas remains open does not mean Art Institute of Phoenix students are ineligible for closed school discharge.

Art Institute of Phoenix students can discharge their federal student debt because their school closed. Federal regulations governing closed school discharge say that “‘school’ means a school’s main campus or any location or branch of the main campus, regardless of whether the school or its location or branch is considered eligible.” That means that if a branch campus closes and the main campus remains open, students from the branch campus are eligible for closed school discharge. The Art Institute of Phoenix is (and was) recognized by the Department as a branch campus of the Art Institute of Las Vegas. So, even though the Art Institute of Las Vegas remains open, students from the Art Institute of Phoenix are eligible for closed school discharge (as long as they didn’t finish and attended the school within 120 days of December 14, 2018).

So what gives? And why isn’t the Department intervening to fix it?

We aren’t sure why servicers are misinforming students. The Department of Education’s official record (.xlsx) of closed schools shows that the Art Institute of Phoenix campus closed on December 14, 2018. Therefore, students who didn’t complete their program or transfer their credits to a comparable program and were enrolled in Art Institute of Phoenix after August 16, 2018 are eligible for closed school discharge.

One possible explanation for some servicers’ wrongful closed school discharge denials may stem from the inaccurate information the Department itself has distributed. In its information page regarding closed Argosy and Art Institute schools, the Department of Education listed the closure date of 24 Argosy and Art Institute campuses—including the Art Institute of Phoenix—as March 8, 2019.

What should you do if you attended the Art Institute of Phoenix and your servicer denies your application for a closed school discharge?

If your loan servicer tells you are denied for closed school discharge, even though you 1) were enrolled in the Art Institute of Phoenix after August 16, 2018 (and did not graduate), 2) did not participate in a teach-out, and 3) did not transfer credits to another similar program at another institution, you should call your servicer and tell them that:

1) You are eligible for closed school discharge because you were enrolled at the Art Institute of Phoenix and did not transfer to the Art Institute of Las Vegas;
2) The closure of the Art Institute of Phoenix, as a branch campus of Las Vegas, makes you eligible for closed school discharge according to Department of Education regulation;
3) The fact that the Art Institute of Las Vegas is still open does not impact your eligibility for closed school discharge because you never attended that campus;
4) The Postsecondary Education Participant’s System’s Closed School List shows that the Art Institute of Phoenix closed on December 14, 2018, and you were enrolled within 120 days of that date and did not complete your program.

If your servicer does not change their response, you should call your servicers’ ombudsman (normally you can find their contact information on your servicer’s website). You should explain that your servicer is rejecting your request for a closed school discharge, and provide the four reasons above that your servicer is wrong. If that doesn’t work, you should call the Federal Student Aid Ombudsman at 1-877-557-2575.

ITT Trustee, CFPB, and States Settle with Private Lender to Eliminate Millions in Debt

Settlements Do More for Cheated ITT Students Than DeVos

As Betsy DeVos and the Department of Education continue to sit idly, indifferent to massive fraud committed by ITT against more than 750,000 former students, the CFPB and a group of 43 states and the District of Columbia filed proposed settlements with one of ITT’s private lenders, a group of credit unions called “the CUSO.” This coincides with a federal bankruptcy court approving a settlement between the ITT bankruptcy trustee and the CUSO. The settlements will provide important relief for former students who took out private CUSO loans. Once the settlements are approved by the court, the CUSO is compelled to:

  • Stop collection of all outstanding CUSO loans;
  • Direct credit reporting agencies to delete consumer trade lines associated with the CUSO loans; and
  • Request that the IRS not require the CUSO to report the cancelled loans as income to borrowers.

The CUSO and ITT are charged with perpetrating a scheme in which interest-free loans made by ITT to students (“temporary credits”) were converted into high-interest, private loans that students were likely to default on. CUSO participated in the scheme, which was designed to help ITT evade federal regulations and write-off bad debt, because the credit unions stood to make a profit—at the expense of the students that ITT swindled.

Yet again, this means that everyone else has done more for the cheated students of ITT Tech than the Department of Education has ever done.

Cancellation of ITT student loan debt makes a real difference for borrowers, but does not begin to address the millions of dollars in unenforceable federal and private student debt that is still outstanding.

While over 14,000 borrower defense applications from former ITT students are pending—thousands submitted over three years ago—the Department continues to move at a glacial pace, having approved only 33 applications to date. This unreasonable, unnecessary, and unfounded refusal to acknowledge students’ claims is an indignity to borrowers who sought an education and better life, but were instead cheated, lied to, and defrauded.

The Department continues to shirk its duty to process borrower defense applications and remains complicit in the ITT-related fraud it oversaw and approved. That needs to change, and we will continue to pressure the Department to eliminate ITT federal student loan debt.

The students in the ITT bankruptcy are represented by the Project on Predatory Student Lending and Jenner & Block.

Related Updates:

Project on Predatory Student Lending Director Toby Merrill Honored By American Constitution Society

At the American Constitution Society’s National Convention in Washington, D.C. this week, Project on Predatory Student Lending director and founder Toby Merrill was honored as a finalist for the prestigious David Carliner Public Interest Award. The American Constitution Society (ACS) is the nation’s leading progressive legal organization.

David Carliner, whom the award honors, was a champion of justice throughout his career, devoted to protecting civil and human rights and combating injustice on a systemic basis. The award recognizes outstanding public interest lawyers whose work best exemplifies Carliner’s legacy.

Toby has been a fierce advocate for students cheated by for-profit colleges since she founded the Project on Predatory Student Lending in 2012, and has since led the Project’s team of attorneys in winning groundbreaking court victories in landmark cases protecting and advancing the rights of defrauded students. The Project is part of Harvard Law School’s clinical program, and a number of its clinical students have gone on to pursue careers to attacking the big, systemic issues that have allowed such a predatory industry to thrive for so long.

“David Carliner was a true civil rights champion, and I’m honored to to be associated with this award named for him,” Toby said. “The Project’s clients have been treated so unfairly—first by a predatory industry and then by a government that refuses to recognize their rights. This recognition is a testament to their willingness to stand up and fight for their own rights and the rights of the millions of students across this country who were seeking a better life through higher education, and instead were lied to and ripped off by for-profit colleges. The billions of dollars of debt that the government tries to collect from them every day is illegitimate.

“In addition to our clients’ bravery and perseverance, the Project’s work is driven by its dedicated staff and clinical students,” Toby added. “They inspire me every day, and I’m lucky to stand up for our clients with such an amazing team.”

The Project represents thousands of former for-profit college students across the country. The Project has cases against for-profit college companies, and against the Department of Education for enabling and supporting this predatory industry. Many of the Project’s clients are people of color, veterans, and immigrants. Most are the first in their family to attend college. The Project’s work supports its broader goals of economic justice and racial equality.

The Project is part of the Legal Services Center of Harvard Law School (LSC), a community law office and clinical teaching site of the law school. Clinical students join the Project’s staff to litigate cases on behalf of clients, in partnership with community-based and advocacy organizations.

In the Fight for Student Loan Relief

By: Drew Henderson, J.D. ’19

Drew Henderson, J.D. ’19

For years, Corinthian Colleges, a network of over one hundred for-profit schools, defrauded students to rake in profits from taxpayer-funded federal student aid. Tens of thousands of students—many the first in their families to seek out higher education—were promised serious career training and job prospects, but left Corinthian’s campuses with little more than thousands of dollars in debt. The company’s bankruptcy in 2015 followed a series of investigations into the fraud that the school inflicted nationwide. But for many who were victimized by Corinthian’s practices, relief has yet to arrive. Over 100,000 applications for loan discharge remain pending at the Department of Education, with tens of thousands coming from Corinthian students.

The Project on Predatory Student Lending at Harvard’s Legal Services Center has long represented students who attended Corinthian schools. When I first joined the Predatory Lending and Consumer Protection Clinic, in the spring semester of 2018, the Project was involved in at least three lawsuits against the Department of Education for its failure to provide legally mandated relief on the federal loans of former Corinthian students. One of those lawsuits, Calvillo Manriquez v. DeVos, was a class action involving Corinthian borrowers whose applications for relief remain pending. Under a summary process established in the previous administration, those borrowers are entitled to prompt and full discharge of their debts.

A few weeks after the clinic started, I began working on Calvillo Manriquez. Corinthian students were beginning to hear back on their claims—but they were receiving much less than the full relief they had been promised. This news was concerning: not only would these partial denials require that our clients be forced to pay back unjust loans  that they could not afford, but the adjudication of their claims also meant that they would face collection soon, before we could challenge the Department’s actions in court.

Project directors and attorneys, Eileen Connor, Toby Merrill, and Josh Rovenger, decided to amend our complaint to challenge the Department’s new methodology for partially denying students’ discharge applications. And to prevent the Department from collecting on our clients in the meantime, we would also file for a preliminary injunction. The expedited schedule of a motion for preliminary injunction meant that I would get to file our motion and attend oral argument in the Northern District of California before the end of my semester in the clinic.

To amend our complaint, we would need additional named plaintiffs who themselves had received partial denial of their claims. These individuals would need to be able to convey to the court why the Department’s illegal policy shift threatened to cause them irreparable harm, such that it should be enjoined. Ordinarily, such preliminary relief is not available when money is at stake, but an exception exists for extreme financial hardship.

We had received word from legal aid colleagues in Los Angeles that one of their clients might be willing to serve as a named plaintiff in our lawsuit. When I spoke with the client last March, she explained how she had attended a Corinthian program after school recruiters promised that her degree would qualify her for a job in medical billing. She graduated on-time from the program, only a few months before Corinthian shut down. She never even received her diploma. Since that time, she has found that deficiencies in the school’s curriculum meant that she cannot obtain a job like she was promised. Only a week before our call, the Department had told her that she would receive only twenty percent discharge of her loans. Alongside the expenses of caring for three children, this partial denial would be a tremendous burden for her family. Her story was one of hope for a brighter future that  sadly turned to disappointment, and it is one that I heard many times during my clinical semester.

I worked to capture the client’s story in a declaration attached to our motion for preliminary injunction. In April, when I attended the oral argument in San Francisco, it was reassuring to hear the court reject the argument that our client had not faced irreparable harm — her story had  been heard. It was similarly gratifying a few weeks later, when the court ruled in our clients’ favor, enjoining the Department from implementing its partial-denial policy. But the reality is that for these students, staving off collection is not enough: long after Corinthian closed, their debts remain.

The fight continues.

Mayor Pete Answers My Question About Predatory For-Profit Colleges

Last Saturday, I went to a town hall in New Hampshire hoping for the opportunity to ask Pete Buttigieg one question: Would he encourage his education department to cancel federal student debt from predatory for-profit colleges?

I wanted to ask him this question because, in addition to being a 2020 presidential candidate, Pete Buttigieg is the mayor of South Bend, Indiana. South Bend is only a couple hours from Indianapolis where ITT Technical Institute, one of the largest and most predatory chains of for-profit colleges, was headquartered before they shut down. I know how important my question is because for the past decade I have observed, first hand, how ITT Technical Institute, and other for-profit colleges, shamelessly defrauded students. I was anxious to hear what Mayor Pete plans to do about it.

Ten years ago, I took an entry level position at an organization called The Accrediting Council for Independent Colleges and Schools, also known as ACICS. There, I learned that accreditation is the gateway that allows colleges to participate in federal financial aid programs. There are several kinds of accreditation, and ACICS focuses on the accreditation of for-profit colleges.

In 2010, ACICS was booming. Applications for new schools and new programs poured in from all over the country. Most of these applications were from a handful of large companies that owned chains of schools, including ITT Technical Institute. In my role at ACICS, I coordinated evaluations of these schools.

As I traveled around the country to evaluate ACICS schools, I noticed a trend. Large chains of schools used elaborate advertising techniques to target low-income and minority populations, promise lucrative job prospects, and then charged outrageous tuition for subpar training programs. There was no way the training offered at these schools would give students the earning potential to pay back their student loan debt. Students, fooled by these schools’ lies, were taking out mountains of debt and getting little to nothing in return.

These schools claimed to be invested in helping nontraditional students get an education and better their lives. But when you looked behind the curtain, these companies used predatory practices to target vulnerable populations so that they could profit off federal financial aid, which ACICS accreditation allowed them to access.

As time went on, I realized more unsettling things about ACICS. The Accrediting Council that made decisions about what schools ACICS would accept was largely made of executives from the very same companies engaging in the predatory practices that cheated students for their financial aid money. The fox wasn’t just guarding the hen house–the fox owned the hen house.

After seeing the fraudulent behavior and predatory practices of the for-profit college industry, I made the easy decision to take my career in a different direction and left ACICS. Years later, I was offered a position working for the Project on Predatory Student Lending, an organization standing up for the rights of students who were cheated by the for-profit college industry.

Last Saturday, I was proud to tell Mayor Pete I work with a group that defends former students of predatory for-profit colleges. Our government owes it to students who were sold lies and cheated out of their financial aid to cancel their student loan debt. As Mayor Pete put it, “If we’re going to talk about student loan forgiveness, the very first thing we should look at is the cases of these people who were let down.” I hope that all 2020 candidates see the importance of canceling all student loan debt for students who were let down.

The Department of Education Is Still Trying to Take Students’ Tax Returns

The rights of more than 100,000 borrowers are affected by this court ruling.

Update, March 28, 2019:

Even after a federal judge told it to stop, the Department of Education is still trying to get away with stealing students’ tax refunds.

Five months ago, the court told the Department that it must stop using this aggressive collection method against Everest Massachusetts borrowers. However, the Department stubbornly has only recognized the court’s order as applying to the two named plaintiffs, and continued to seize the tax refunds of other students who are covered by the pending borrower defense claim filed by the Massachusetts Attorney General on behalf of all Everest Massachusetts borrowers.

Because the Department refuses to follow the court’s order in this case, AG Healey recently filed a motion to force the Department to comply with the court order and stop using tax refund offset to collect on any Everest students in Massachusetts. Yesterday, we submitted our own filing in support of that motion. The government opposed.

My Student Loan Truth: Kristina’s Virginia College Story

In our Student Loan Truth blog series, our clients share what they really got from their for-profit college and how the debt affected them. Their experiences demand a public reckoning on student debt and an end to the predatory practices of for-profit colleges.

This is Kristina’s student loan truth.Virginia College Student

“I was focused. I had goals.”

When Kristina Jefferson enrolled in the cosmetology program at Virginia College last year, she thought she would have been proudly walking across the stage at her graduation with her cosmetology certificate this month, and prepared to take her cosmetology licensure examination, but the school failed her. Virginia College’s abrupt shutdown last year was just one of many instances where the school failed her and the rest of its students.

Thousands of students like Kristina have been left with no school, no education, and tens of thousands of dollars in debt by Virginia College and other schools owned by its parent company, Education Corporation of America.

If you were a student at Virginia College, Brightwood College, Brightwood Career Institute, Ecotech Institute, Golf Academy of America, or New England College of Business, click on this link to find out more information about the status of the schools and how you may be able to file a claim for a refund if the school has any assets left.

 

How did you hear about Virginia College?

Virginia College had a lot of commercials with people explaining their life struggles and how the school helped them. There was one commercial with a Black woman riding the bus that stuck out to me. She was homeless, and she had two children. She decided to go to school for Medical Assisting, and it bettered her life. After attending Virginia College, she got a job, her life improved, and she had more stability. She didn’t have to ride the bus anymore. I understood her struggle because I relied heavily on the bus for transportation, and I, too, wanted to better my life.

That was in 2014; I decided to go to Virginia College for Medical Assisting because I wanted to care for people. I know how it feels to be sick. I am a good listener. I wanted to help lift people’s spirits.

They never helped me get a job in the medical field. But I had taught myself how to do hair and had been doing it for years, so in 2018 I decided I wanted to hone my skills and get licensed. I had seen a lot of online advertisements on Facebook and I took it as a sign that I should do the cosmetology program, so I enrolled last year.

 

What did they tell you about the programs and getting a job when you started?

Both times they said we were guaranteed to get a job after we finished the program. It was not true, and all they did was send links of jobs from Indeed. I was living with my mother and was not financially independent. I had to take the bus which required me to wake up at 4am to get to school on time; I even had to walk on the highway. The school promised me that they would help me get a job and help me get an easier commute, but they did nothing.

 

Describe the educational experience at Virginia College.

We had to teach ourselves. The instructors didn’t want to help us understand or answer questions. For the cosmetology program, they only taught by showing us videos. The instructors also didn’t teach us certain skills they said they would. We were supposed to learn how to do makeup, but instead, the instructor gave us a paper printout with a face and we used colored pencils, our own makeup, or the school’s outdated makeup to color in the face.

They promised we would get jobs, help with our resumes, they would teach us, and that our credits were transferable. They didn’t keep any of those promises. They didn’t even keep the school open!

 

How did you get your student loans?

When enrolling I met with the financial aid people, but they didn’t explain anything to me. I didn’t know the amount of loans the school was borrowing on my account. They told me everything would be covered by student loans, but toward the end of my time at Virginia College, I was told I had a balance and wouldn’t be able to receive my certificate if I didn’t pay the balance. That’s on top of the more than $30,000 in federal loans I have because of them.

 

What impact has Virginia College and this debt had on your life?

They really ruined my life, and it’s not right. I had goals. The school closing just made it harder for me. I have to start all over now. I was told that my credits were transferable, but it’s not true. Basically, my transcript is worthless. It’s just a bunch of words. It’s not right.

 

Some policy-makers doubt that for-profit colleges are a problem – what would you say to them?

It is a problem when they are just trying to make money and don’t care about the students. Virginia College closed down and people are suffering. It is not right. They took our money and then closed and left the students to try to fix what they caused.

 

The Department of Education has refused to cancel the loans of thousands of former students of for-profit colleges. What would you say to the Department about the need to cancel these loans?

They need to be more understanding of situations like this and protect the students. It’s not right.

 

Sound familiar? Do you have a similar story to Kristina’s at Virginia College, Brightwood College, Brightwood Career Institute, Ecotech Institute, Golf Academy of America, or New England College of Business? Click on this link to find out more information about the status of the schools and how you may be able to file a claim for a refund if the school has any assets left.

Despite Court Order in it’s Favor, the Project on Predatory Student Lending Continues to Wait for DOJ to Produce Documents

Nearly three years after submitting its original Freedom of Information Act (“FOIA”) request, the Project on Predatory Student Lending is still waiting for the Department of Justice (“DOJ”) to fulfill its legal obligations to produce documents that Education Management Corporation produced to it in a federal whistleblower lawsuit.

On July 9, 2018, the Court ordered DOJ to produce approximately 3,600 pages of documents to the Project—documents that the government had asserted that the public had no right to. Over seven months later, DOJ still has not fully complied with the Court’s order. DOJ initially produced approximately 1,800 pages to our office, refusing to produce the remaining pages. As requested by the Project, the Court again instructed DOJ to produce the remaining 1,800 pages. DOJ then produced the outstanding pages, but many of them were either heavily or completely redacted. After the Project questioned the appropriateness of the redactions, the government determined that it would remove some of the redactions and would reproduce the documents to the Project. Though DOJ has reproduced some of the documents in question, the Project is still waiting for all documents that it is lawfully entitled to.

Related Litigation
DOJ provided conflicting reasons for why it originally withheld documents from the Project. Initially, it cited four FOIA exemptions and protective orders in the whistleblower litigation as the basis for denying the Project’s FOIA request. Later, the government asserted that the requested documents were not agency records and indicated that it had not even searched for or reviewed potentially responsive documents. Consequently, in March 2018, the Project filed a separate FOIA request to DOJ for all records related to its original FOIA request and the administrative appeal of that original request. On December 7, 2018, the Project filed a second FOIA lawsuit against DOJ challenging its failure to respond to this second FOIA request. Despite its complete failure to respond to the Project’s second FOIA request and consistent with its previous recalcitrance to comply with legitimate FOIA requests, DOJ filed its answer in which it denies that the Project is entitled to any documents.

Related Documents
The Court’s Order of July 9, 2018
The Project’s Second FOIA Complaint