How to Qualify for the Everest College Lawsuit, Student Loan Forgiveness or Discharge Benefits
UPDATED Tuesday March 24th, 2020
I have good news for Everest College students: there’s a very good chance that you can qualify for a student loan discharge, and maybe even for a refund for any payments you’ve already made toward your outstanding federal student debt related to attending Everest.
You can access these great debt forgiveness benefits via one of two Federal student loan forgiveness programs, using either the Borrower’s Defense To Repayment Program, which offers forgiveness and refund benefits to students who were defrauded by a school, or the Closed School Loan Discharge Program, which lets students eliminate loans that were taken out for schools that shut down before they could graduate.
In this post, I’ll explain how to find out if you qualify for one or either of these programs, then I’ll walk you through applying for the benefits, and detail how to increase the odds that your application is approved.
NEWS ALERT: Per the official Federal student loan website, a Federal disctrict count is preventing the U.S. Department of Education from collecting on Federal Direct Loans held by Corinthian Colleges borrowers, including students who attended Everest, Heald and WyoTech campuses.
This is the result of a lawsuit called Manriquez v. DeVos (No. 3:17-cv-7210-SK), a case from Northern California that is still pending. This case revolves around the Borrower’s Defnse to REpayment Program, stemming from a claim that the borrower’s loans should be forgiven because Everest misrepresented job placement rates for certian programs.
You can take advantage of this lawsuit by immediately filing for a BDAR discharge, which will automatically force the Department of Education to place your loans into forbearance and/or in stopped collections status.
But Before I Explains BDAR and the Closed School Programs…
Let me first give you a quick bit of advice – so many applications have flooded the Department of Education that it’s now taking them an average of 2+ years to respond to people, so while I definitely do suggest submitting an application, I don’t recommend sitting on your hands until you hear back from them, because you’re highly unlikely to receive any immediate financial relief.
If you're truly struggling with student debt, then you should also consider paying a Student Loan Debt Relief Agency for help. Why? Because the people working at these companies deal with student loans all day, every day, and they're your best chance at figuring out how to get your loans back under control.I've interviewed all sorts of debt relief agencies over the past 10 years, talking to all sorts of so-called "experts", and I can tell you that in all honesty I've only found two companies I trust to offer actual financial relief to people struggling with student loans.
For help with FEDERAL Student Loans: Call the Student Loan Relief Helpline at 1-888-906-3065. They will review your case, evaluate your options for switching repayment plans, consolidating your loans, or pursuing forgiveness benefits, then set you up to get rid of the debt as quickly as possible.
For help with PRIVATE Student Loans: Call McCarthy Law PLC at 1-877-317-0455. They will negotiate with your lender to settle your private loans for much less than you owe, then get you a new loan for the much lower, settled amount. NOTE: McCarthy Law can ONLY help with Private student loans.
If you do decide to call one of these companies and you have a bad experience with either of them, PLEASE make sure to come back and let me know about it in the Comments!
The Everest College Lawsuits
Everest College closed its doors in 2015 after its parent company, Corinthian Colleges, Inc. filed for bankruptcy.
Corinthian (and therefore Everest itself) came under scrutiny from Federal regulators and watchdog agencies for misrepresenting its post-grad placement rates and targeting vulnerable, low-income students by pressuring them to take out student loans in order to attend the school.
In March of 2016 the Attorney General of the State of California ordered Corinthian to pay $1.1 billion in penalties and restitution for false advertising, which means that Everest has been not just accused of false advertising, but proven to have committed that illegal activity.
This opens Everest College up to Borrower’s Defense Against Repayment Discharge proceedings, meaning that anyone who attended the school can use this evidence of fraudulent behavior as the reason why their Everest loans shouldn’t exist at all, and should be officially wiped out.
If you still owe Everest money, pay close attention to the rest of this post, because I’m going to show you how you may be able to get the debt eliminated completely.
Discharging Everest College Loans via Borrower’s Defense Against Repayment
Anyone who took out a loan to attend a school that committed fraud against them is eligible for loan forgiveness or loan discharge via the Borrowers Defence Against Repayment Program.
This is a program created by the Federal Government to protect borrowers who were illegally convinced that should attend schools who couldn’t live up to their promises, and which may allow you to wipe out all the debt you owe for your Everest education.
How? Because Everest College (via the Corinthian Colleges lawsuit) has been proven to have broken the law, which means that all you need to do is prove that Everest lied to you, personally, and that it was only because of their lies that you were convinced it’d be a good idea to borrow money to attend their school.
Are you thinking that this sounds too good to be true? Don’t worry, Everest College loan forgiveness is the real deal, and this is no scam. Other former students of Everest College are already having their student loans forgiven right now, which sets a precedent for forgiveness, and means that you could get your debt wiped out too!
Keep in mind though that you’re going to need to link the lawsuit and Everest’s illegal marketing activities to your personal claim, which means you’ll have to be able to explain exactly why you deserve to receive a discharge, but as long as you actually did experience their false advertising claims, or some other form of fraud, then you should be good to go.
One thing to keep in mind is that you do need to take your time with the BDAR application, because you really only get one shot at this process, and because if you fill it out correctly you stand a very good chance of having your student loan forgiven.
If you’re one of the truly lucky ones, then you may even qualify for a refund for any money you’ve already paid toward the loan.
How to Write Your Borrower’s Defense Claim
The most important thing to know about writing the Borrower’s Defense Claim is that you must emphasize that the school engaged in illegal activity which directly impacted your decision to borrow money so you could pay for their program costs.
If all you do is point out that the school broke the law, got caught, and was punished, then you won’t be approved for a discharge of your own, because you have to prove that the only reason you thought it was a good idea to attend Everest was because they defrauded you.
Your BDAR application should focus entirely on explaining how you would have never taken out a student loan to attend Everest College if the school hadn’t engaged in fraud by lying to you about their placement and job success rates,
But you can’t just say “They lied to me, and tricked me into attending”, you need to be specific about what they said or promised, and when it happened too. Remember, BDAR is a legal process, so DO NOT LIE, and don’t even exaggerate. If you weren’t actually defrauded, do NOT file a BDAR application, because you could face enormous legal repercussions.
If you were defrauded by Everest, then spend some time thinking about when you were told certain things, what kinds of marketing messages were portrayed to you, and where you experienced them. Was it over the phone? In person? Via email? Do you have any written records or examples of the claims that they made? What exactly did they tell you? What did they promise you? What was it that they said which convinced you to take out that student loan?
All of this needs to be included in your BDAR application, so if you really want to get a discharge approved, you may need to spend a couple hours thinking about how things went down before you even start filling out the paperwork..
Now, let’s go over what kinds of fraudulent activity Everest College engaged in that got them penalized in the first place, and as you read through the list, ask yourself if any of these things happened to you. If they did, remember that you should include them in your BDAR application, because the most evidence you can accumulate, the more likely you’ll be to receive a discharge.
What Fraudulent Activity Was Everest College Been Accused Of?
Corinthian Colleges, Inc., the parent company of Everest College, has been accused of lying about their job placement rates and engaging in predatory practices by pressuring vulnerable low-income students to take out student loans in order to attend their schools.
When you were thinking about applying to Everest, did you hear anything about their job placement rates? Did anyone tell you that a certain percentage of graduates were able to acquire jobs within their fields of study? Did anyone talk about earning specific amounts after graduation? Or having specific roles at their new jobs?
As I mentioned above, you can’t simply point out that Everest College lied to the general population, and say that make you entitled to loan forgiveness as a former Everest College student.
What you need to do is clearly show that the school did this to you, personally. You need to provide details of how they lied to you about their job placement rates and how they pressured you into taking out a student loan. If you can’t do that, then your BDAR application will get rejected, and you won’t receive forgiveness or discharge benefits.
Let’s review exactly what Everest College was accused of in the lawsuit against Corinthian Colleges. Remember, as you read through this stuff, think about whether or not Everest did any of these things to you. If they did, you can file a Borrower’s Defense claim for them and you’ll have a good shot at getting it approved.
Everest College’s Illegal Marketing Activities
Everest College has been accused of the following illegal activities, each of which open the school up to BDAR discharge claims:
- Misrepresenting their job placement rates. For example, telling prospective students that 100% of their graduates in a particular field could find a job within the first month after graduation
- Misrepresenting the quality of a program by telling students that they will be able to easily pass licensure exams in their field after completing a degree from Everest College
- Pressuring vulnerable, low-income students into taking out huge loans in order to pay the tuition cost for one of their sub-standard education programs
Did Everest College do any of these things to you?  If so, it’s your right to have your student loan forgiven, and you need to submit a BDAR claim as soon as possible.
Where Can I File My Borrower’s Defense Claim?
To file your Borrower’s Defense claim, go to the official US government website and go through their BDAR wizard. If you want to read the entire form because you start making your way through the wizard, click on the button at the bottom that says “View Form”.
It’s very important that you file your claim here, at the official US government website set up for the Borrower’s Defense Program.
Don’t file the application anywhere else, no matter what anyone promises you, because there are tons of Student Loan Forgiveness Scams floating around and you definitely don’t want to fall into one of their traps!
You wouldn’t believe the number of scammers out there who will make all sorts of wild promises in order to make some easy money by stealing your personal information, so be extremely cautious about deciding who to trust.
Checking The Status of My Application
Unfortunately, the Borrower’s Defense Claim applications are taking forever to process, which many people waiting over a year before hearing back on the status of their claim.
But don’t let the idea of a long wait stop you from applying, because BDAR is truly your best shot at getting your loan forgiven and having money refunded, even if President Trump and Education Secretary Betsy DeVos hate the program and want to dismantle it entirely.
If you think you’ve got a shot at receiving an approval, my advice is to fill out your application as soon as possible so that even if the program gets cancelled, your application will be in the system and they’ll be forced to honor the process and provide you with forgiveness (if you quality for it).
There’s never been a better student loan forgiveness program on offer, so make sure to take advantage of Borrower’s Defense even if your claim is a long-shot at getting approved.
Receiving Forgiveness via the Closed School Loan Discharge Program
As I mentioned above, there are two ways to receive student loan forgiveness as a former student of Everest College, so if you don’t feel that the school defrauded you and therefore don’t think you’ll qualify for the Borrower’s Defense program, then have no fear, because there is another way.
The Closed School Loan Discharge Program is your second best way to qualify for an Everest College discharge, and it was created for students who were still attending the school when it shut down.
The nice thing about Closed School Loan Discharges is that you don’t have to do any legal wrangling or convincing via arguments and evidence, because Closed School Discharges are a binary thing – if you were a student who left the school no more than 120 days prior to it’s closing (or if you never left it at all, but were still studying at the time of the closure), then you qualify for a complete student loan discharge.
And that’s a great thing for those of you who were left in the cold when Everest shut their doors!
Eligibility Requirements for Closed School Discharges
I have an entire page devoted to the Closed School Loan Discharge program, so if you need any further details after reading through the information below, be sure to head there first.
Remember, in order to qualify for the program you must have either been a student at the school at the time it closed or have left no more than 120 days before it closed. If you went to Everest in the 1990’s, then dropped out and never finished, you’re still going to owe whatever money you borrowed because you won’t qualify for a Closed School Discharge.
But that’s not all, because there are a couple of other conditions you need to satisfy as well. First, you cannot be attending another school after having transferred your credits from Everest College prior to the date it closed, and second, you also cannot have completed all the credits required for a degree from Everest College but failed to take the diploma for some reason.
If either one of these two conditions apply to you, you will not qualify for the Closed School Loan Discharge program.
If you can satisfy these conditions, however, there’s a very good chance that you’ll be able to have your student loan forgiven. Therefore, you should definitely apply.
How Do I Apply for a Closed School Discharge?
To apply for the Closed School Loan Discharge program simply fill out the application and submit it to the people who service your loan.
The people who service your loan are the ones that send the money to via your student loan payments every month.
Every loan servicer has a different procedure in place for processing these applications, so you’ll need to find out what your servicer requires before you can determine how to proceed.
After you submit your Closed School Loan Discharge application, your servicer is legally obligated to inform you of their process, and then as long as you qualify for the discharge, and you follow their instructions on what to do next, you should get your debt fully forgiven.
Which Program is Better? Borrower’s Defense or Closed School Discharges?
I wouldn’t say that one program is better than the other. They will both discharge your student loan debt and both can possibly reimburse you for any payments that you’ve already made too.
Assuming that you qualify for both programs, however, I would choose the Closed School Loan Discharge program simply because the applications for the Borrower’s Defense program are taking so long to process.
Nobody wants to keep paying down a loan that shouldn’t exist in the first place, especially for a year or longer while waiting for a response from the Department of Education, so I would advise that you pursue the Closed School Loan Discharge if it’s an option for you.
However, it’s ultimately your choice. Read through the requirements for both programs carefully and choose the program that suits your particular situation best.
Will I Owe Taxes on Forgiven Debt?
Yes, any discharged student loan debt is considered income and therefore taxable by the IRS. That’s bad enough. However, it gets worse. The IRS is going to come after you for the money when you file your next tax return, and they’re not going to be as easy to deal with as your student loan servicing company.
Why? Because while your loan servicer lets you break out the debt you owe them into small, affordable monthly payments, the IRS is going to request that you pay them all at once, in a single lump sum.
Most people don’t have that kind of money lying around, and if you’re like most people, then you’ll need to work with the IRS and apply for their long-term payment plan in order to make this an affordable process, so don’t think you’re free and clear just yet, because that could be a difficult process too.
To put it in numbers, let’s say that you have $100,000 in student loan debt forgiven. If your taxable income is 30% that means that you will owe the IRS a whopping $30,000, and it means that they’ll want you to pay them that entire $30,000 all at once with you next tax return.
Since most people suffering under the burden of student loan debt don’t have that kind of money on hand I’ve created an entirely new website called Forget Tax Debt, which offers advice on dealing with IRS tax debt, just like I do here for Student Loans.
If you’re having trouble with taxes, or the IRS, then have a read through my new site, looking at articles on Filing & Paying IRS Back Taxes, IRS Tax Debt Settlements, The IRS Fresh Start Program, and IRS Tax Debt Forgiveness.
Dated News from the Everest Case
NEWS ALERT: On Thursday, December 13th 2018, Betsy DeVos’s Department of Education announced that they will begin immediately issuing $150,000,000 in Borrower’s Defense to Repayment Discharges. This is in direct response to a recent Federal ruling that DOE needed to terminate all delays in the BDAR approvals process.
CNN reports that about half of the $150 million is being used to cancel Corinthian Colleges debt, and since Everest is one of the Corinthian schools, you’re almost certainly going to see your loans cancelled if you made a good case on your BDAR application. DOE said they’d start notifying borrowers of impending discharges on Friday December 14th, and that the official cancellation would come through within 30 to 90 days.
If you’ve already applied for BDAR, make sure to pay close attention to your emails, and if you haven’t applied yet, get that application in TODAY to increase the odds that you’ll receive forgiveness during this wave of approvals!
Where Else Can I Ask Questions?
If you need help with anything related to student loans, then be sure to visit the other pages of my site, or leave a question if the Comments section below. I try to respond to all comments within 24 hours, and I’d be happy to help you too.
For questions about getting Help with Federal Student Loans, check out my pages on Federal Loan Forgiveness, Federal Loan Bankruptcy Discharges, Federal Loan Delinquency & Default, Federal Loan Consolidation and Federal Loan Repayment Plans.
And if you need Help with Private Student Loans, you’ll want to visit my pages on Private Student Loan Forgiveness, Private Student Loan Consolidation, Private Student Loan Bankruptcy and Private Student Loan Default.
Finally, remember to be careful about who you take advice from, because this space is rife with scam artists trying to steal personal information and extract money from desperate people. Don’t pay anyone for your help unless you’ve fully vetted them, or someone you trust has recommended them to you.
Disclaimer:Information obtained from Forget Student Loan Debt is for educational purposes only. You should consult a licensed financial professional before making any financial decisions. This site receives some compensation through affiliate relationships. This site is not endorsed or affiliated with the U.S. Department of Education.
By: Tim Marshall
Tim's experience struggling with crushing student loan debt led him to create the website Forget Student Loan Debt in 2011, where he offers advice, tips and tricks for paying off student loans as quickly and affordably as possible.
hi mommy of now 7 and at the time i only had 4 kids and was single kids dsd just left me and my only option was going back to school an quick!
.. i went to everest college thinking it was the right idea and that i was going to get my diploma/degree in dental assisting.. how ever i started in Reseda ca and had to transfer to Alhambra ca and was told i had to take out another student loan bc they couldnt transfer my loan nor did it count. i now have over 7 accounts open in my name and owe over 20.000 and it really sucks now bc i tried to use my diploma out here in Las Vegas and they told me my creditably isnt good out here i went to school from may 2013- oct 2013 … and im just finding out about this. and got my taxes taken from me 2 years in a roll… smh its all bull! and im tired of them taking my hard earn money from my family!!!!
I fit perfectly in to this situation, was promised job placement and never got a job in the field of study and not for lack of me trying. However, all of the communication that I had with them was through their school email system which we can no longer access…how am I supposed to provide proof?
Hi Mindy,
Document as much as you can in your application. Explain what you were told, when it was told that, who said it, how it impacted your decision to take out the money, etc.
I was enrolled at FMU which later changed to Everest University. I attended from 11/04-08/06. When I toured the campus, I was very pressured to sign paperwork immediately even when I felt unsure. I was swept away. The person that I spoke with said I would have a position immediately upon graduation because of their placement program and companies like Lockheed Martin were particularly interested in their graduates. I did not graduate and had to leave the state. The credits are not even transferable to another college because of their accreditation issues. Now to this day I am still paying my federal student loans for an education that never really existed. What are my options? I have no written proof of their promises of employment and they even told me that I would hear rumors in regards to their accreditation but assured me they were invalid.
Hi Tanya,
It’s normal not to have written proof of the promises; hardly anyone does, you can still apply for and receive a Borrower’s Defense Discharge as long as you do a good job documenting what was promised.
I went to Everest Institute in Ohio around 2007. I was 18 with a minimum wage job, no license, and came from a poor family in a not great neighborhood. A representative called me up one day and convinced me to come in for an informational session, and I was hooked. I was pressured to take out a student loan with my grandmother as the co-signer. I did not finished the program, and therefore did not receive my degree. The entire time I was in the program, we couldn’t even keep an instructor to stay and teach our course. This was all so long ago, and I was so young and naive, and I don’t have any way to prove what happened to me, let alone remember much of the situation. And tips, or helpful insights?
Hi Heather,
Take a look into the Borrower’s Defense to Repayment Program.
Hello I came across this as I was trying to help a friend out based off of my experience (ironically) and I’m at just now hearing about all of this with Corinthian Colleges. I never put 2 and 2 together when I tried to obtain my transcripts so I could start school and I was not able to find the school info without help. Well needless to say I have loans that I am still paying on and just recently (2018) was offset because of them. I went and recovered all the info I could from an old email I used with the school and I am preparing to fill out the paperwork necessary to file against the school. Just wondering which direction to go whether I try to get them discharged or something different. I was also trying to see if it’s too late to try and get the money back that was offset for last years tax season.
Hello, I took a course in massage therapy with Everest in the year of 2014-2015. I was promised that after graduating my massage program that I would be able to place my credits to my Associates degree in Business and Management. They had me convinced and pressured me with the idea that it would only require one year and couple months to finish my degree. When I graduated the massage program my dean told me that they were going to close the school. I asked what would be a preferred action to take in this predicament and I was told by the campus that I could take the course of the same degree online with Everest. Communication with the online course was bad and they write me off as a dropout when I just couldn’t get my work through to them. Am I still eligible for loan forgiveness?
Did Everest close within a couple months of when you were enrolled? If so, you may be eligible for the Closed School Loan Discharge. If not, then try to pursue a Borrower’s Defense to Repayment Discharge.
I attended Everest online in 2011 bit I didn’t even complete a full term/semester due to not ever being able to get in contact with my Financial Aid advisor and my student advisor. I dropped my classes before the the withdrawal time was up and even went back to this school. When I registered with Everest online, I had told my financial advisor that I didn’t need or want any student loans and than as I was going through my school finances I saw that I had like three loans with the school and I called and asked them how and why I have these loans when o said no and refused to sign the paperwork. Now I’m stuck with these loans and I didn’t attend the school for a full term/semester, didn’t graduate with the school or ever go back because I was having so many issues with them. Do I qualify for anything with this since now the school is closed and I didn’t even attended but maybe a month and refused to have loans. They also promised me to help find a job/internship while in school and that also didn’t happen but yes I did withdraw from the school. Is there anything I can do to help with these loans with Everest online?
Hi Heather,
You may qualify for a BDAR Discharge. That’s where I’d look.
I attend Everest back in 2011 online, and they had me take out students loans that I said no to. I could never get ahold of my financial advisor or student advisor and I dropped all my 2 classes I had before the withdrawal deadline line was up, which was half way through the term. I did not register again with Everest but I still have to pay the whole loan amount even though I did not complete a whole term with the school and now they are closed down. Is there anything I can do about my loan with this school?
Hi Heather,
Take a look at the BDAR Discharge Program. That’ll be your best bet.
I attended Everest College i believe on May 2009, and graduated i believe June 2010. I did not have my high school diploma, they sounded very convincing when they said i did not needed it and i could still get a great job with a Medical Assistant title, they ran my credit and told i did not qualify for financial aid, so i needed to get a personal loan. I ended up getting 2 personal loans because 1 loan would not cover the whole semester. I was also promised assistance with getting a job and would not stop helping until i found a job. After graduating it took them 2 weeks to give me my certificate, when i went to pick up my diploma, i informed them that i had not found a job yet, and they said oh ok here is a list of places that are hiring, good luck. Since graduating i have not been able to find a job in that field and am 8,000 in student loan debt. I have tried contacting that location, but they are now permanently closed now.
Hi Manny,
You might want to look into the BDAR Discharge Program.
I am afraid I will not qualify for any help due to my experience being around 2009 2011 as well. Everest wouldn’t even send me paperwork, transcripts proof of credits etc. I only did 2 years of my 4 yr degree. I have supposedly 50 outta 95 college hour credits. I was so upset and disgusted with the overall system, it was a waste of time and money! The curriculum and teachers were a joke! They just kept on trying to pressure me into re upping with them! They wouldn’t work with me as they “advertised flex hours” they hated if you asked questions! So much for the so called student advisor crap! All their agendas involved is more money! Worst college experience ever!
Hi Michelle,
You won’t qualify for the Closed School Discharge, but you should look at a BDAR Discharge.
I filled Forgivness for loans over 5 years ago and told it is still being processed, today I got refunds in the mail for every payment I have made, but when called for status update was told It is still being processed , when I asked why the sent refunds then they had no answer what does this mean.
Hi Dede,
5 years on a response is the new record. The worst I’ve heard previously was 3. I would double-check this by contacting your loan servicer, as that sounds ridiculous.
Attended Everest University from 2007-2012 I acquired a Bachelor’s degree in criminal justice. It wasn’t until 2014 that I started my career in choice of field. However, I did that on my own, Everest did not help me at all. Now I have over 91,000 in student debt for a 4 year degree. Every year the interest rate keeps growing. We can’t get approved to buy a home Because of my debt ratio with these student loans! There’s no way a 4 year degree should cost me over 91,000! The Everest University location I attended was closed in 2015. They promised job placement, a high success rate , low and affordable student loans and repayment assistance. Once I graduated I never heard from them again other than 2 years later trying to take credit for my employment that only required a GED or high school diploma that I acquired on my own.
Hi Julie,
The degrees cost what they cost. You may be able to qualify for a BDAR Discharge though.
I graduate in 2007 with MBA, I took online classes Corinthian College/Everest University, Do I quality for Discharge or forgiveness? My MBA is of no value both schools lost their accreditation and they are are closed. And no it did not help with getting a better job. What are the changes?
Hi JCMW,
Maybe via a BDAR Discharge?
I have a question. I have received the repayment of the amount that seems like it was accurate. So when we went back in to pay the loan and wipe out my debt we have now found that the college added the entire amount BACK INTO MY LOAN as if the debt was still owed (we had never stopped paying on our loan) so our balance literally doubled and then on top of that they added in the interest through that time (another $600) so they literally added another payment to our balance and it was as if this check never happened. When I called them they said they were forced to send us the check but that didn’t mean we didn’t owe the money still and they had a right to get the money owed. So now I have the same balance as previously because we promptly paid the money straight back onto the loan, we will have received an interest of $600 even though we never stopped paying on any balance, and after reading this article I see I am also going to be taxed?! LORD HAVE MERCY this repayment is going to end up costing me more money then they paid for my loan!
Hi Rose,
That doesn’t sound right at all. I would speak with an attorney or at least talk to the Department of Education.
Good Evening,
When I attended Everest it was known as Bryman Institute. I asked tons of questions to the Administration Dept. And the Financial Aid Dept. I was told in a face to face interview that I was guaranteed job placement after graduating the program. Needless to say I didnt find a job, nor did they help me. I ended up taking a job at a grocery store so my daughter wouldn’t lose her daycare slot. As time went by I still couldnt find a job. Even when I reached back out to the school for job placement I was told that I would need to come back to take a few REFRESHER COURSES, which would only be a few thousand dollars more. I was shocked that they would say I should pay more money. I didn’t pay anymore money to the school. The IRS ended up taking my taxes to cover the costs of what I owed to the school. I feel I shouldn’t have to pay since I was given false information. I studied very hard to become a Medical Assistant, each module I got A’s and B’s the entire time I was in the school. I passed every single test. It was a waste of time and money that could have gone to an institution that actually cared enough to help me. What can I do?
Hi Tina,
Being promised a job is illegal. I’d try to file a Borrower’s Defense to Repayment Discharge.
Make a payment plan tying to see can I get half off the tax refund money back and I
U keep half
Yeah, you’d have to take that up with the IRS and the odds of getting it approved are very slim.
So how do i apply for this student loan forgiveness im already in the collect in debt for $17,000.00 and the collection agency keep pilling up with this student loan from everest college that i attended 2013 -2014 now i have bad credit and i need help to get this student loan taken away from me
Hi Gustavo,
Look into the Borrower’s Defense to Repayment Program.
I attended Everest from March of 2007 and graduated in October of 2010. I had come in to talk to them because of a commercial saying how great it was that replayed every commercial break. When I sat down I was told how wonderful it was the job placement was extremely high and the degree was only $23,000.00 and if I joined now I could have a prize. I thought how bad could this be, and then I found out. Next thing I knew every quarter they were asking for a new loan signature then halfway through my degree the federal loans were no longer enough to cover and I had to take out personal loans as well. I also had to stay an extra semester because they lost my grades. So by the time I was to do my externship they didn’t find me anything for a few weeks. Finally I did my externship and decided gynecology & ob was not where I wanted to be so I went back to the college and they said they would help again about a month went by and finally they helped me get a job where I was in a psychiatric office. That wasn’t even what my degree was for. It was back office medical assisting. Do I stand a chance of anything?
Hi Misty,
You may qualify for a BDAR Discharge. I’d look into the options there.
I attended Everest and graduated in 2008 for Medical Assisting. I was not given the proper education and my teacher Ms. Allen was fired because she was on drugs. she never followed the curriculum and did not prepare us to pass the state boards. None of the students in my graduating class passed the state boards and I didn’t bother to take it because I know that she did not give us the proper training needed to pass. Ii had just finished high school and I was persuaded to take out loans because I was told that I had 10 years to pay them back. I did have job success but my manager stated that had she know I went to Everest she would have never hired me. This school never provided me the training I needed for the amount of money they are asking for. what do you think?
Hi Nakeishia,
It won’t matter if your teacher was bad, that’s not how you qualify for a BDAR Discharge. I would suggest reviewing my Guide again to look at the types of things that make one eligible for the benefit, then see if any of them apply to you.
Yes I attend Everett University online class and I did my work and everything but when it was time to issue my refund they sent me a letter saying I was getting over 3 thousand dollars but I never did I was told it went toward my next semester..so I want to know why am I paying on loans and I didn’t never receive a refund in the first place..and I am still paying on it as of today.
Hi Kizzy,
What refund? Why were you getting a refund?
I attended 2009 -2010 and “graduated” but was never placed for a job. I did the Borrowers Defence in 2016 and never heare anything back. My loans are frozen but it’s send like the interests are still accruing. BIG MESS!!!!
Hi CC,
Have you still not heard anything back?
Hello,
I received an e-mail on the 11th of January
“January 11, 2019
Borrower Defense Application number (#):
Dear
A federal district court has preliminarily stopped the U.S. Department of Education (ED or we) from collecting on William D. Ford Federal Direct Loan (Direct Loan) Program loan(s) held by certain Corinthian Colleges, Inc. (Corinthian) borrowers. You are receiving this email because a review of our records indicates that you are affected by the court order, as a borrower with a pending borrower defense to loan repayment (also known as “borrower defense” or “defense to repayment”) application.
The preliminary injunction order was issued in Manriquez v. DeVos (No. 3:17-cv-7210-SK), a case that is currently stayed, pending appeal, in the U.S. District Court for the Northern District of California. The case involves a challenge to a methodology ED used to calculate the amount of loan discharge for certain Corinthian borrowers. The order applies to persons who submitted attestation and general application forms for borrower defense to loan repayment discharges on the basis of ED’s findings that certain Corinthian-owned Heald College, Everest Institute, and WyoTech campuses misrepresented job placement rates for certain programs.
Pursuant to the preliminary injunction order, borrower defense applicants with pending applications on this basis have been placed into forbearance and/ or in stopped collections status. While your borrower defense application remains pending, your federal loans will remain in that status pending further direction from the court. If you are in an income-driven repayment plan with a calculated payment that is zero ($0) you will not be placed into forbearance, as no payment is due.
For more information about the lawsuit, to view copies of the May 25, 2018, preliminary injunction order and the subsequent clarifying court orders, or to learn more about how forbearance and stopped collections status may apply to your situation, please check out ED’s website at StudentAid.gov/corinthian. If you have any questions about the status of your loans in light of these orders, please visit our website or call us at our Borrower Defense Customer Support at 855-279-6207.
Sincerely,
Borrower Defense Unit
Federal Student Aid
U.S. Department of Education”
What do I need to do, Is this a good thing or a bad thing.
Please advise,
Thank you
So it sounds like your loans are being paused while this case is being determined, because it directly impacts you. You don’t need to do anything, you just won’t find out if your BDAR application is approved until this case is resolved.
Contact your Loan Servicing Company to ask them if you need to make interest-only payments while your loan is paused, because if it’s accumulating interest, and you don’t make those payments, then you’ll end up owing more money at the end of this if your BDAR application is not approved.
I attended the LVN program in 2007 and due to failing 2 tests i was dropped from the program, only to be transferred to a different location to pick up where i left off. 2 mos later i tried to enter the program at the new location and they did not accept me claiming i was not educated enough. (i did not pass a skills competency upon re-entering the course) i fought tooth and nail with the school claiming they cannot just leave me with a bill! i was a transfer student and i just wanted to finish my last 3 months. well, they did indeed left me with the bill and pretty much told me there is nothing else they can do. The admin stopped returning my calls and just left me with over $30,000 debt. Do I qualify for this?
Hi There,
Um, this doesn’t really sound like a claim that would receive a BDAR approval, so no, I think you’re going to have to come up with a better argument here.
Hello everyone I attended Everest for my masters, I needed to take three more classes to complete my degree. I was told by the college I had no more money left to complete my degree. (MBA)
Everest charged me more then they should have l eaving me with no money to complete my masters
I have not found a school that will take my credit from Evest.
I attended a masters program for nothing wasted time and money I can’t get back.
Everest called my one day to inform me that I’d taken classes previous for my masters. Those classes would expire if I did not return to school within two days. I attended Everest the next day, they assisted me with signing up for studend loans and my classes, I was back enroled to Everest sitting in class again the following day after enrollment
I am so mad that I was not able to complete my masters NO OTHER COLLEGE WILL TAKE MY CREDITS.
This sounds like you may have a good case for a BDAR Discharge.
Are your loans Federal, Private or mixed?
Last year my son received a letter from the Attorney General regarding the college he attended might of been fraudulent. He filled out for a forgiveness through the Attorney General’s office. He did not receive his degree or was not called to give the guidance and help he was told he would get. The school closed. His personal loan was dropped off but he still has the FAFSA loan hanging out there. The case was won now we are waiting to see if his loan is dropped. How long does this usually take?
Hi DC,
There’s no “usually” in this case – it could be a couple months or several years. It all depends on the court, the lawyers, and the settlement agreements. Hang tight!
I was lied to.. they knew I didn’t have a HS diploma to begin with yet they convinced me to take out loans took the class and i graduated. I’ve been a nanny for 8+ years, not even working for what I went to study for.
Hi Lourdes,
Not having a HS Diploma and being allowed to go to the school anyway is not one of the things that would make you eligible for a BDAR discharge. Read my full post again to see the list of issues that count as fraud.
I also did not have a high school diploma and I was told that I didn’t need one to start at Everest university in Orlando Florida I was told that at the I’m of completing there would be 100% placement and I’ll only owe $15,000 needless to say now I owe over $50,000, there’s no way as a single parent I can pay that. I just don’t know what companies to trust or how to go about doing it. I just need this off my credit because it’s making it hard for me to purchase a home for my children.
Try to pursue a BDAR discharge.
I attended Everest in Pompano Beach Florida 2009-2011 and I got a so call degree in criminal justice which of course I didn’t get any job in this field. I was part of that hey you sitting on the couch commercial that went in thinking how can I better myself and of course being young with no college background or family that experienced college admission. I too was fooled in with they’re guarantee job placement and transfer credit promise. But what gets me is that I was told I was getting financial grants not loans and here I am paying $40k and struggling.
Was anyone elae defrauded with their financial aid application? How can you prove this? How can fight this battle?
I’m now applying for my son’s fasfa and I’m stressing about everything this Everest experience was the worse thing ever.
Hi Giselle,
You’ll need to explain the fact that the guaranteed job placement pitch and transfer credit promise were what convinced you to apply for school in the first place, and that you never would have borrowed any money to go there if you hadn’t been lied to. I would absolutely try for BDAR, and make sure that you put as much detail about what you were told/promise, and how it impacted your decision making as possible. Read my entire post again. You’ll see very specific examples of the types of things that qualify you for a discharge, and how to word the narrative part of your application.
Omg… i attended the same time you did but I never finished. I was under the impression that it was a grant not a student loan
Question. Do I qualify for my Everest degree? I had just finished my junior finals in 2009 and they refused to give me my grades stating that I had financial aid problems. I have been fighting them ever since. Finally, in Feb. this all loans were proven not to be correct and so they were forgiven and closed. If not for Everest taking my money the year before, and messing with the paperwork then I would have graduated on time and my grandmother would have seen me walk across the stage before she passed in 2010. What can I do? Who do I ask? I’ll be 44 tomorrow and Everest was my 2nd chance. I was disabled going into this journey and I’ve gotten worse now. Thanks
Hi Ro,
It sounds like you already had all your loans discharged, based on your comment? What are you attempting to qualify for?
My kids graduated April 2011, can they apply for the loan forgiveness, the school was of no help, they had to look for their own externship site and it was the same stupid story from, we cannot find you a site and of course never help them get the jobs. They promised everything and nothing was true and I was even employed at the school during this time
Hi Sybil,
No, your kids won’t get forgiveness just because the school didn’t find them an externship. The forgiveness programs like Borrower’s Defense to Repayment are for people who were DEFRAUDED by their school. Read my entire article and you’ll see the sorts of things that make you eligible for a discharge.
I had applied and it’s been going on 3 years still haven’t heard anything from them not an email or letter nothing does this mean that I probably didn’t get approved since it’s taking 3 years almost now
Amy,
Contact the Department of Education to ask for an update.
Same exact thing is still happening to me. I’ve filled out over 5 forms each year and have never got a response. Today I went to do another one and saw they were found guilty in December 2018. So I called a number that was never available before and was told they never received any of them and filled out one again today but the form was completely different. My identity was stolen also because scam artists other than Everest got all my personal information and have stolen lots of money! My tax refunds for 3 years, ruining my credit, opened credit cards, got loans etc.. complete nightmare a year and half later of enrolling because was lied to to just get me in. I’m assuming the employees that enroll us must get bonuses for signing us up, cause no other reason to do that. There is so much more… a living nightmare that still is going on 14 years later. I hope you get justice ASAP!
Hello I was just wondering if there is any update on BorrowerDefense? I have not heard anything or seen anything on the news. I was just wondering if anyone’s claim went throug.
Thanks you everyone.
Hi Andrew,
Yeah, so the Department of Education is still trying to delay approvals, but people ARE getting their applications approved and debts ARE being discharged. It’s just happening slowly.
I am wondering same thing haven’t heard anything
I graduated from Everest College in 2007, all of my student loans have long since been paid off. I was lied to by my admissions officer about the percentage of job placements after graduation, I was promised that they would help place me, and I was also liked to that my credits were transferrable at any college (I made it known when I was being recruited that I wanted to eventually get into nursing). I was also coerced into signing for high interest private loans a couple months AFTER I was admitted (they said there was a mistake with my financial aid and that I had to sign for a couple of extra loans or I’d be expelled that very day for non-payment. They wouldn’t even allow me time to look over the paperwork). I graduated with a 4.0 GPA. My externship site did not hire me and I was never able to get a job in my field. Would I qualify? Or was it too long ago??
Hi Juli,
You will not qualify for a Closed School Discharge because you graduated, and it sounds like you won’t qualify for a Borrower’s Defense Discharge either, since your loans are private. It does sound like they were after you with extremely aggressive tactics though, so I think you should certainly try contacting an attorney to see if there’s anything they can do to help. Honestly, it sounds like you would have a good legal case against the school, just not one that is eligible for a Closed School or Borrower’s Defense Discharge.
I had such a rotten experience at Everest college when I accepted my graduation forms I specifically requested for them to *never* contact me again where they requested my signature for diploma. They kept saying you must choose within 5 days of class to start whether the school was right for you. They convinced our “core mod” (9 month course Dental Assistant) there was no way out of the financially binding agreements. We were told they were ADA accredited, but learned the hard way my credits were non-transferrable when I went to my local community college to pursue dental hygiene. I could go on and on about being denied access to computer lab to do homework during hours of operation when it was not in use and dental work performed on me by dentists (students from dental school) before waivers were signed and so on.
Hi Wendy,
The ADA Accreditation issue MAY be enough to qualify for a Borrower’s Defense Discharge if you can prove that they lied to you about this. That really does sound like fraud.
I graduated in 1991 at Bryman College i wasn’t able to get a job until 2004 . Loan went into default it was hard to catch up . 2019 I applied for loan forgiveness and after 27 years of never ever garnishing my hard earned money it was garnished after inquiring about the forgiveness and applying . Should I hire a lawyer or wait for the forgiveness answer to get my money back .
Hi Shunta,
Look at my page on Stopping a Student Loan Wage Garnishment. That is probably your best place to start.
Next, take a look at my Guide to Student Loan Delinquencies & Defaults, and finally, my Guide to the Student Loan Rehabilitation Program. These should help you figure out what you can do to get out of the situation you’re in now and get your loans back into repayment status.
Then think about using a Borrower’s Defense Discharge to try to get rid of your outstanding debt. You’ll need to come up with a compelling argument about how the school committed fraud against you, and YOU CANNOT LIE HERE, but based on the reputation of your school, that may not be too difficult.
I filled out paperwork more then a year ago that went to some lawyer I was told to not pay my student loans and they will not effect my credit or anything. Well they have been effecting my credit and I have not heard anything about what is going on with the case do I need to fill anything else out it should I just wait to hear something?
Yeah, that sounds like pretty bad advice.
What was the paperwork that you filed? Was it for a BDAR Discharge?
I went in 08-09 and cost me 21,000 and I had a VA LOAN pay for mine and it just now is coming up on my name saying I never paid for my loans after the VA paid for my schooling . How is that possible ? The school has been closed dept of edu said because they sold the loans but I had no knowledge of this? I’m not paying for this . Now they took my taxes for a education I’m not getting and for what ?
Hi T.M.,
Sounds like something didn’t work correctly, but I would try to figure out what went wrong with the VA funding. Sounds like you also need to look at my Guide to Stopping Student Loan Garnishments as well.
Try contacting the Student Loan Ombudsman Group, which is a group of attorneys who offer free legal advice on problems like yours.
I took Criminal Justice courses at Everest University online and left in 2013. I regret going there. One day I hit a link to look at this school online then the next day the school called me. They literally called me everyday up to 7 times a day for 2 weeks. I finally answered and this guy was so convincing and pressured me into attending there. He even said I’m guaranteed to get a job after I graduate because they help with that. Anyway I almost graduated with only needing 1 class. But issues came up. Anyways, in 2016, I filled out my loan forgiveness application through DOE and told them about job placement and the harassment to attend there and 6 months later I got a loan forgiveness letter. I’m so thankful for this because my loan was $33,000.
Hi Amy,
Thank you for sharing your story with me and my readers! This is EXACTLY the type of news that everyone is constantly searching for. I’m really happy to hear that your BDAR Discharge was approved and that you got your loans forgiven!
One quick question – did they tax you on the amount of money that was forgiven, or were you able to simply walk away from the debt? Thank you so much for your comment, you made my day!
I received a letter from the Attorney General regarding this matter. I attended Everest. I filled out the online paperwork from the Attorney Generals office do I need to fill another paper out?
Hi Anthony,
What did the Attorney General ask you to fill out?
I went to Everest from 2013-2014 and graduated but i did not get a job right away or at all like they had told me i would. The school shut down and i was left with over $16k of student loans. i havent made any payments towards my student loans since the school had shut down, however, every year the IRS takes my taxes because of this. PLEASE HELP!!
Hi Andrea,
Did you read my entire post? Look at the section on filing a Borrower’s Defense Discharge Application. You’re going to need to accuse them of some sort of fraud if you’re hoping to get the loan discharged.
Do we apply for the forgiveness on the website he referenced in this article? They took my refund for student loans from Everest.
Hi Elizabeth,
You apply for Forgiveness via the Department of Education. Which program are you trying to utilize? The Closed School Loan Discharge Program or the Borrower’s Defense to Repayment Program?
Im going threw the same thing , took my refund due to loans at everest ;
t i know they never mention about& they promise ima have a job ? And i conpleted the hold 9 months & look at me 5years later with no job. Please Help
I graduated in 2010 in Austin I’m in almost $16,000 in debt. Never got a job in what I studied for. Always was told they’d help and make sure I’d get a job and nothing. I can’t pay my loans. Will I qualified for student loan forgiveness?
Hi Jessica,
You need to have much more specific claims about what they told you or promised. If you tell DOE that they said they’d help you get a job, or make sure you got a job, that’s not going to be enough for a discharge. Go back and read through the examples I explained in the article. You need VERY specific claims to get approval for a Borrower’s Defense to Repayment Discharge.
Hi ! I graduated from Everest Minnesota in 2004/5 , the school is closed. I was promised job placement I never received, when school was in session I wanted to transfer credits to further my education and become a LPN and/or an RN. I was promised by admissions I could ” easily” do this. Come to find out,no credits could be transferred and they didn’t even ATTEMPT to find me employment. That student loan cost me roughly 20,000 could be under or over a couple thousand. I didn’t ever want to repay that type of debt because I was and am a single mom of 4, they made it so confusing and completely scammed me into having a loan I could not afford. The IRS took all my student loan money in 2 chunks, which left me with nothing as far as my refunds those years. I counted on that tax money every year to get my kids activities/clothing/school supplies/groceries and to pay off utility Bill’s that built up that I couldn’t pay all get taken care of when taxes came. But nope, 2 years I received nothing but a paper stating they took my money. I feel that this wasn’t ok being the school was closed, I received no employment couldn’t transfer credit and could never afford those type of loans. I was so manipulated in my experience starting with admissions. Please point me in the right direction. I want my money back for a really poor, scam type ” education”..thanks in advance.
I don’t know how I’m just now seeing all this about this college but I went through their online program and graduated in 2009. I saw some dates for all this when I went in to look at my loans but it looks like I graduated before the lawsuit, is that right? Is there a specific time frame? I’m paying down on a $20k 2 year degree (some of my schooling was paid through work so $20k for less than 2 years) and nobody helped me afterwards nor could I ever get info from them regarding my costs. I’m not even sure what to do first?
Hi Jennifer,
The lawsuits cover basically all time, but the Closed School Loan Discharge Program only applies to people who were still enrolled in courses at the time (or near the time) the school shut down. You were there way too early to take advantage of the Closed School Program. I think you need to figure out if your loans are Federal or Private, then contact whoever services your debt to see what your options look like.
I attended Everest college in 08-09. I had knowledge that only 2 loans on my name were going to cover the school fees. The advisor lie to me saying the program was $10,500. With out me knowing or signing the school took out 2 more loans under my name for a school of theres in Long beach, ca. I had no knowledge of that school nor did i ever attend there. West los Angeles off of Robertson were i attend school. I remember the advisor would call me to her office every friday just to collect my payment $150, in two occasions i try to pay with a check and the second with visa and she didnt take my payment but she did tell me… that if i didnt pay for my out of pocket payment on time they wouldnt give me a diploma after finished with the course
Hi D.H.F,
I can’t really tell what the school did that you think is illegal here. It sounds like you had a bad customer service experience, but what are you accusing them of doing that violated some laws, or included committing fraud? I would work on your explanation before submitting a BDAR discharge application, because I don’t think you’ll win an approval if this is your story.
Quick question. I went to Everest online and graduated. Because of the fraud that took place is my degree worth anything?
Hi Dawn,
It’s hard to say. I think all degrees are worth something, but online schools don’t have the best reputations…
I can tell you though, as someone who hires people regularly, I don’t care where people went to college. I don’t even care if they finished their degree programs. What matters to me, as a hiring manager, is if they can think on their toes, do the job I’m asking them to do, and get along well with the rest of the team.
Everyone is different though, and some people still think the system of only hiring college graduates from top-ranked schools is the best way to proceed…
I wanted to ask you first before doing any applications. I attended Everest University Online from spring 2014-2016 and did graduate. However, they are now trying to say a 2 year online degree costs $36,000. I know there is interest but an online program shouldn’t cost that much. No one helped with a resume or job search either and I was left out in the cold. What should I do?
Hi Jennifer,
This isn’t enough for a Borrower’s Defense Discharge. Online degrees often cost MORE than in person programs. You’re not going to qualify for a BDAR Discharge if this is all the evidence that you provide in your claim.
Apply because they mislead you about the cost of the program and they lied to every one about job placement. They claim you have a guaranteed job placement at the end of your studies. And if you do not get placed they will look until they find you placement. Which is a big ass lie so go ahead and apply.
Apply, and apply right now. I was a student there, and they said all the time about placement and how your studies were going to be used when they placed you in a job. They do nothing to help you find a job, get a job, or even have a chance at getting a job. They do not place you in anything but debt, lost time (4 years), embarrassment, and heartache. They said their credits would transfer anywhere, they said they would place you in a job after graduation, and they said if you have any trouble after, you could call them for further help with employment. All of that was a lie. Just think of how many times your “professor” told you about job placement; think about how many times your adviser told you about “placement.” There IS NO PLACEMENT!
I had mine discharged, and (only for Corinthian Colleges and Online students) you do not have to report the discharge on your tax returns. Finally there is some justice in this world. Apply NOW! Your loan will be discharged, and you can use it to attend a real school. They lied to you, and they defrauded you. They took your money knowing good and well you would not get a job and you would not have any chance of having any credits transferred to another college.
I received an Associate degree in Paralegal and a Bachelor’s degree in Criminal Justice; I still do not have a job in those fields to this day! Apply!
To Corinthian victim… where did you apply? My case is similar to yours and every year I owe more to my loan due to not being able to make payments…
Just to confirm, if you were on online student with the Corinthian colleges, you DO NOT have to report the discharge on your tax returns?
I would ask the IRS if you want to know for certain. I’m not going to offer advice on this issue because I’m not a CPA or a Tax Attorney or anything of that nature.