How Can I Apply For a Career Education Corporation Refund?
I’ve got more great news! On January 3rd, 2019, Career Education Corporation finally agreed to settle a lawsuit against the company which began way back in 2014, which was led by the US Senate, and spurred on by student complaints.
Per the terms of the lawsuit settlement, Career Education Corporation will forgive nearly $500,000,000 in outstanding student loan debt provided to students at the following schools:
Funds are set to be provided to over 179,000 borrowers who took loans directly from Career Education Corporation itself (called “Institutional Loans”), and the a huge portion of the funds are being allocated to borrowers in Florida ($68 million in funding) and Texas ($51 million in funding).
This lawsuit stems from Career Education Corporation misleading students about the actual value of the programs offered at it’s schools, including specific complaints about the company lying about job placement rates and average incomes of graduates.
What Are the Settlement Terms of the Lawsuit?
In the terms of the lawsuit, the company has been ordered to stop attempting to collect the outstanding debt from former students, and it will also have to ask the credit bureaus to delete the debts from borrower’s credit reports!
The school is also going to have to start issuing a single page disclosure to all future potential students with details covering their job placement rates, anticipated total costs of the education program, and the average earnings of graduates for each program that a potential student is considering enrolling in.
And this is an excellent move to help dissuade future borrowers from burying themselves in debt over degrees that may not end up turning a positive ROI, as well as a great precedent set for other schools who are doing similar shady things as what Career Education Corporation schools have been accused of doing.
One important thing to note here is that this deal only covers institutional loans held by Career Education itself, and does NOT cover Federal student loans, or other Private student loans from other lenders.
Also, California has not yet settled with Career Education Corporation, and is still working on it’s own deal with the company, and New York already reached an agreement with the company, so borrowers in CA and NY will not be included in this round of forgiveness.
Details have not yet been released about when the loans will be forgiven, or what that process will look like, but I’ll update this page as soon as the information is available, so be sure to check back soon!
Get Help With Your Loans!If you're truly struggling with student loan debt, then you should 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.
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. McCarthy Law will negotiate with your lender to settle your private loans for much less than you currently owe (typically 40%), then get you a new loan for the lower, settled amount so you can pay off the old loan, repair your credit and reduce your monthly payments.
I've spent 10 years interviewing debt relief agencies, talking to all sorts of "experts", and these are the only two companies that I trust to help my readers. If you have a bad experience with either of them, please make sure to come back and let me know about it in the Comments!
What if I Have a Federal Loan for a Career Education Corporation School?
If your loans from a Career Education Corporation School are Federal, then you’ll need to use the Borrower’s Defense to Repayment Program to get them wiped out.
Fortunately, that’s a relatively easy thing to do, and I’ve written up an entire Guide on How to Get a Borrower’s Defense Discharge, so be sure to view that and start working on your BDAR application right away!
For specific details on filing a BDAR application for each of the Career Education Corporation schools, please be sure to visit my Guides on:
- Filing a BDAR Discharge Against Le Cordon Bleu
- Filing a BDAR Discharge Against American InterContinental University
- Filing a BDAR Discharge Against Colorado Technical Institute
Make sure to get your BDAR Discharge application in as soon as possible, because discharges and funds are allocated on first-come, first-serve basis, and you’ll want to be near the beginning of the line in order to receive funds!
Does the Borrower’s Defense to Repayment Program Really Work?
While Betsy DeVos (our Secretary of Education) has tried to prevent BDAR discharges from being offered, it WILL work, and you WILL eventually earn a discharge for your debt, as long as you follow the rules of the program.
Per public records, 2,000 former students have already applied for BDAR discharges from Career Education Corporation Schools, but as of yet, none of those applications have been approved.
This ruling will probably be a huge factor in loosening the purse strings and forcing the Department of Education to finally start issuing BDAR discharges now that it’s been proven the school mislead potential students and committed fraud against them.
My advice to you is to get your application submitted immediately because when rulings like this are handed down, funds are typically allocated to a certain amount, and once that funding dries up, no more discharges are offered until another round of money gets approved to be released.
Basically, that means it’s a first-come, first-serve system, so if your application is in before everyone else’s, that increases the odds that you’ll receive forgiveness sooner.
What Other Options do I Have?
If you’re stuck with debt from other schools that aren’t under the Career Education Corporation umbrella, then you’ll want to look into other options for getting rid of the loans.
Your best bet is to look into the other loan forgiveness, discharge and refund programs that are already out there, and to see if any of these could help with eliminating or at least reducing your outstanding student debt.
For help with Federal Student Loans, please look at my Guides on:
- Federal Student Loan Forgiveness Programs
- Federal Student Loan Bankruptcy Discharges
- Federal Student Loan Consolidation Programs
- Federal Student Loan Delinquency & Default Help
- Federal Student Loan Rehabilitation
- Stopping Federal Student Loan Wage Garnishments
- Federal Student Loan Deferment Programs
- Federal Student Loan Forbearance Programs
- Federal Student Loan Repayment Plans
- Federal Student Loan Grace Periods
And for help with Private Student Loans, be sure to look at my Guides on:
- Private Student Loan Forgiveness Programs
- Private Student Loan Consolidation Programs
- Private Student Loan Bankruptcy Discharges
- Private Student Loan Default Help
If you still can’t figure out what to do with your student loans after reviewing my Guides, please feel free to post a comment asking whatever questions you might have in the Comments section at the bottom of this page.
I review comments each day and try to respond to all of them within 24 hours of posting, and I’m happy to offer my advice, so don’t be shy!
Where Can I Ask Other Questions About Student Loans?
If you still have issues with student loans after talking to me about them, then don’t give up, because there are other options available!
First thing you should try doing is contacting the Federal Student Aid Information Center at 1-800-4-FED-AID. They can offer advice on anything related to Federal Student Loans.
Finally, if you have some spare change and are willing to pay a company to deal with your loans on your behalf, I would recommend calling the only student loan relief agency that I trust; the Student Loan Relief Helpline, who can be reached at 1-888-906-3065.
Their service costs a couple hundred bucks, but it could stand to save you tens of thousands of dollars over the lifespan of your loan, so I think it’s definitely worth calling and paying for their expert advice!
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Thank you for visiting Forget Student Loan Debt, and please don’t forget to check back regularly for updates as I add content to each Guide whenever new information emerges.
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.