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University of Phoenix Lawsuit. Thousands of claims from students are still pending on the Trump Administration


In the United States, the amount of student loan that has become a chronic problem is increasing day by day. A clear solution is currently not offered. Related to financial assistance, some educational institutions engage in fraudulent activities against the federal government. They are colleges, universities, municipal colleges, and online schools. In order for these institutions to receive federal financial aid for students, educational centers must regulate federal laws and regulations. Student Loan Forgiveness programs are very important. So, most of the former students may take advantage of the University of Phoenix student loan forgiveness. Then they can focus on their career in a suitable way. They can do it by fully approving all requirements.

For-profit colleges lead the most notorious violators of the Law on False Claims for Student Loans. What are fraudulent activities?

“Recruiting students” is one of the fraudulent activities that educational centers engage in. In 2010, a covert investigation by the United States Government Accountability Office (GAO) revealed that fifteen commercial colleges across the country, four colleges encourage applicants to fraud, such as fake credit documents, in order to qualify for federal aid. The investigation made clear that all fifteen colleges made fraudulent and misleading statements under the covered applicants.


History of fraud

The Obama administration argued that the laws were necessary after a number of commercial colleges closed their doors including Corinthian College in 2015 and ITT Tech in 2016. It happened after disclosing claims by state and federal agencies that Schools mislead applications for learning standards and levels of employment, and for using aggressive hiring tactics.

University of Phoenix

The Department of Justice announced that the University of Phoenix had agreed to pay $67.5 million to the United States. The United  States started an investigation of claims on violation of the False Claims Act. Both former employees of the University of Phoenix claimed that the University of Phoenix had violated the False Claims Act. They also claimed to accept federal financial assistance to students, violated federal law, paid admission counselors based on the number of students recruited. Informers received an award of $ 19 million. Graduates of the University focused on Trump’s decision on the University of Phoenix student loan forgiveness.

Trump Student Loan Forgiveness

The 2019 budget proposed by the Trump Administration looks like terrible suffering for student loan borrowers. It is terrible especially for those who plan to take advantage of the incredible Public Service Loan Forgiveness program. It is still the best existing federal student loan elimination program. But student loan forgiveness will continue whether or not is unguaranteed. The Trump administration wants to close the Public Service Loan Forgiveness plan from its 2019 budget.

Fortunately, all the proposed changes will not take effect for those who have already borrowed, or for those who lend up to July 1, 2019. So that these changes will not have an influence on existing borrowers or people who can borrow before that date.

Many student loan borrowers are wondering about Donald Trump’s plans. These plans are important to overcome The University of Phoenix student loan forgiveness. In addition, Education Minister Betsy DeVos being an outspoken defender in many areas of education, she hasn’t succeeded to solve the University of Phoenix student loan forgiveness.

Unfortunately, these issues scare a huge number of students. Considering the importance of the Public Service Loan Forgiveness program, it may lead students loans to borrowers billions of dollars. Trump and Devos want to terminate more than $ 700 million in Perkins loans and significantly reduce the amount of job training programs.

Student Loans are no Longer Taxable


In accordance with Section 11031 of the Tax Cuts and Jobs Act, modified student loans for Total and Permanent Disability Discharge (TPD) are added to the gross income of the borrower. Under the new law, when a student applies for dismissal student dismissal loans are no longer considered as taxable income. This is an extremely beneficial change for disabled borrowers who want to apply for dismissal on their federal student loans. Previously, many borrowers preferred not to apply for an extract and remained in terms of income-based repayment.

Borrowers with disabilities were afraid that their student loans would be repaid. Because they would see a hefty tax bill that they have to pay at the end of the year, which in many cases they cannot control.

Trump’s Student Loan Forgiveness Proposed Changes

The changes are proposed below. Federal borrowers who are currently in repayment or who are considering federal student loans to cover future education expenses are currently under discussion.

Public Service Loan Forgiveness (PSLF) Plan

The PSLF program was launched in 2007, discontinuation of this program was scheduled by the Trump administration for possible removal from the federal budget. Who pays 120 eligible monthly payments (10 years) and works as a qualified non-profit and government employee takes advantage of this program.

The discontinuation of the PSLF plan was first proposed for the 2018 budget. After being excluded from the last repetition, it was again included in 2019. Completion of this program can prevent borrowers from pursuing a career in public service, government, law enforcement, teaching, etc., by choosing the private sector instead.

Discontinuing the Student Loan Interest Deduction


Student loan consolidation

Originally included in the Law on the Reduction of Taxes and Jobs, the Trump administration proposed to cancel the retention of interest on a student loan. Deduction of interest on a student loan allows borrowers to deduct up to $ 2,500 from interest on a student loan paid in a given year to your taxes.

There is an income limit for this deduction; borrowers earning more than $ 80,000 are not eligible. The loan should also come from a qualified source and get it to pay for the cost of qualified education.

No Longer Offering Subsidized Student Loans

The budget proposal for 2019 also includes the elimination of subsidized student loans. This will be great news for new student loan borrowers. Currently, the government pays the accrued interest while the student is in school for federal subsidies.

Student loan subsidies are available only to borrowers who demonstrate a financial need when filling out their FAFSA. There are still unsubsidized loans, but in the long run, they are much more expensive, and students will get more loans. Congressional Budget Office reports in December 2016, the elimination of subsidized loans as a whole would have cost $ 26.8 billion for students for 10 years.

Creating a Single Income-Driven Repayment Plan

The proposed single option will limit the borrower’s monthly payment to 12.5% of their discretionary income. Student borrowers and graduates will be given 15- and 30-year terms, respectively, to forgive student loans.

New York Branch of the Federal Reserve (FED) reports that Americans who have student loans cannot buy new houses and have a negative impact on the growth of the economy. From this point of view, a solution to student loan forgiveness, especially, University of Phoenix student loan forgiveness, has particular importance.