Sabrina Stovall - University of Phoenix is one of the schools on the Sweet v. Cardona lawsuit (previously Sweet v. DeVos), a class-action case concerning student loan forgiveness for borrowers who were defrauded by for-profit colleges and other institutions.
Key Details of the Lawsuit:
The lawsuit was originally filed in 2019 against Betsy DeVos, the then-Secretary of Education, by borrowers who had applied for loan forgiveness under the Borrower Defense to Repayment program.
The plaintiffs argued that the Department of Education was unlawfully delaying or denying loan forgiveness claims, leaving students stuck with debts from fraudulent institutions.
The case was settled under the Biden administration, with Secretary of Education Miguel Cardona approving full loan discharges for eligible borrowers.
Who Qualifies for Forgiveness?
The settlement covers about 200,000 borrowers who attended specific predatory institutions, many of which were for-profit colleges accused of misleading students about job placement rates, accreditation, and quality of education. Some well-known schools involved include:
ITT Technical Institute
Corinthian Colleges
DeVry University
The Art Institutes
University of Phoenix (in some cases)
And many others
What Does the Settlement Do?
Eligible borrowers receive full student loan cancellation, refunds for payments made, and a restoration of their credit.
The Department of Education created a list of over 150 institutions where students were automatically eligible for debt relief.
Borrowers who applied for Borrower Defense before June 22, 2022 are included in the settlement.
You can still apply. You have to fill out the Borrower's defense application. Here is more info on it and you should be able to find the application.
Good Luck!