The list of colleges covered by the settlement that appears in this story has been updated to reflect changes the U.S. Department of Education made to fix clerical errors.
The list originally included ATI College, Missouri College of Cosmetology North, Hallmark University and International Technical Institute. They have been removed. Missouri College has been added. We covered the changes here.
Earlier this month, a federal judge tentatively approved a $6 billion settlement between the U.S. Department of Education and hundreds of thousands of student borrowers who say they were misled by their colleges.
The deal would automatically grant debt relief to roughly 200,000 people who filed a borrower defense to repayment claim against one of 150-plus colleges listed in the agreement. The borrower defense rule allows students to receive debt relief if their institutions misled them.
In court documents, the Ed Department argued that “attendance at one of these schools justifies presumptive relief” because of strong signs that they carried out misconduct. The listed colleges also have high rates of borrower defense applications, the agency said.
Several listed colleges took issue with the Ed Department’s arguments. Career Education Colleges and Universities has voiced concern that the Ed Department is trying to approve claims "without regard to individual merit."
U.S. District Judge William Alsup will soon consider motions to intervene from several colleges listed in the agreement. Their officials argue that their inclusion on the list has damaged their reputations. If their motions are granted, they will become legal parties in the lawsuit.
With recent developments driving interest in the case, we're listing all of the institutions whose borrower defense claimants could receive automatic relief.
