Whoo Hoo! In a class action Sweet v. Cardona, the parties, including the Department of Education, have just announced a settlement of Borrower Defense to Repayment claims (“BDTR”). It’s still early, and we don’t yet know if this settlement will be approved by the Court or if some of the named schools will oppose it. We anticipate that the listed schools who are still in business will oppose the settlement or petition to have their school removed from the presumptive list. Here is a copy of the filed settlement agreement. So while this isn’t final, it’s certainly a huge step in the likely direction of where these BDTR applications are headed. It’s been a long time coming, and will result in much needed relief for student loan borrowers.
What should you know? Well, first of all, here is a list of schools that are presently in line for a full discharge.
For a FAQ, please go here. One of the parties who has been instrumental in obtaining this settlement, the Project on Predatory Student Lending, has prepared detailed questions and answers for those who attended these schools or have allegations of fraud under the BDTR program.