In 2015 the subsidiary company of Corinthian Colleges – Wyotech was found guilty of scamming students by exaggerating job placement data, and convincing students to take large loans which they cannot pay back now. Those students who had low income believed Wyotech scams and took out loans. They were made to think that high tuition fees are worth their “high standard” education and in the end, it would all be compensated with high salary jobs. As a result, many students fell into the trap of Wyotech scams.
Some former Wyotech employees claimed that they were told to enroll as many students as possible. Therefore, the college ended up accepting students who have knowledge of a ten years old school student. The teachers were shocked when they found out about the education of enrolled students. However, Wyotech scams did not end there.
They went to extreme lengths to keep students at the college by giving them elementary exam questions that were impossible to fail. Attendance levels were dropping below historical minimums as a result of Wyotech scams. They constantly changed deadlines so the students who failed to submit their assignments on time would have a second or third chance. Students were receiving lots of emails from the college trying to remind them about their late assignments. The teachers were told to accept any assignments that were submitted and give passing grades to students to keep the circle rolling. We will provide you with additional facts about Wyotech scams and how to file a claim in Borrower’s Defense to Repayment Discharges against Wyotech or apply the Closed School Loan Discharge program to get Wyotech student loan forgiveness.
What is going on with WyoTech right now?
Former students of the college are alleging fraud and claiming that Wyotech scams its students. They are claiming that not only the school promised them that they would get a good education and it was a shabby one, they also said students would get great job placements, so students took large loans. Most of these students are eligible to obtain loan forgiveness. What is interesting is that there are about 1.2 trillion dollars of outstanding student loans. Most of these are federal loans, but these loans are notoriously difficult to discharge, even in cases of bankruptcy.
Colleges cannot be sure about wiping out students loans by declaring bankruptcy. Corinthian Colleges used bankruptcy law to their advantage to get the government to bail them out but students had no recourse. They were under investigation for some of these practices, but what Corinthian actually saying is that government knew about the pending investigations so the government should have never let the college take these loans out and as a result because the government knew that and did not disclose it, it has to discharge these 3.3 million dollars of loans.
The secretary of Education Arne Duncan has announced that the government will forgive federal loans of students who have attended for-profit schools including the victims of Wyotech scams. Corinthian colleges have shut down all of their campuses for good in April and declared bankruptcy after the government stopped giving them federal loans which made up 90% of their revenue. The news of loan relief could mean that as many as 350 thousand former Corinthian students could get a total of 3.5 billion US dollars back. However, it’s a long process.
What is up with for-profit education?
The schools like Everest, Heald, and Wyotech are run by private businesses worried about their bottom lines. Many of them are even publicly traded. Public and private universities are super expensive too, but they are not operating to make investors rich at the expense of students. So what is the appeal? Well, for-profit schools offer quick degrees and more focused concentrations, but they often prey on people with few alternatives. The government’s investigations of the Cerinthian schools found out that WyoTech, Everest college and Heald colleges overcharged and deceived students.
McKenzie Vasquez who has fallen victim of Wyotech scams said the school tricked a naive 20-year-old who knew little about the education system. “They take you in, tell you what you want to hear, they sell you this huge dream, and they profit from it. They are profiting off of people’s aspirations, their dreams. This is just a money making business, and they do not care where their graduates end up.” She is not the only student who fell for that dream. Enrollment up for profits has gone up over the years. In 2014, 1.4 million students were enrolled in more than 1,300 schools across the United States. A number that doubled in the last 10 years. Even though that is just about 13% of all students nationwide, for-profit college students account for 30 percent of loan borrowers and half of the loan defaulters.
Wyotech Lawsuit Complaints
The sad thing is that this is just one-way students are taken for a ride. The department of education fined Heald college 30 million dollars in April for inflating job placement rates. Schools like WyoTech scammed students by convincing them that their job placement rate was nearly 100% when it obviously was not. On top of that, Wyotech scams are known to the people because they always target the poor. California’s Department of Justice obtained an internal Corinthian document showing that Wyotech scams potential students they call “isolated” individuals with “low self-esteem” and have “few people in their lives who care about them.
Do we have good news?
So this announcement to forgive loans for students who fell into Wyotech scams is good news? Not in many of the students’ opinion. Students say that the government should have stopped funding these schools years ago when they began investigating them. “They know that Wyotech scams students but they want us to individually go through the process and submit these forms that take a huge amount of time. Then they want you to have lawyers. How can I afford a lawyer, if I cannot afford to pay back my loan?” said Vasquez. Other politicians have come out against the department of education too, like Senator Elizabeth Warren. She says it ignored the signs of mismanagement at these colleges and even kept them in business.
What options do I have?
In December 2018 it was announced by the Education Department that 150 million US dollars were set aside to approve Borrower’s Defense against Repayment Program. In case you have not filed your claim against the college yet, it is advisable that you file it in the shortest time possible because most of the students are already getting their debts forgiven. You have two main options.
The first one is the Borrower’s Defense against Repayment program. This option is for students whose college has somehow broken the law. If you were a victim of Wyotech scams, then you qualify for this program. All you have to do is to state that the college did something illegal to you. In this case, you can say that WyoTech inflated their job placement data to convince you of getting the student loan. Therefore, it was their unlawful actions which made you take massive debts. We give you this information in a nutshell, but there are certain things to be known before filing a claim. If you don’t wish to go through this process all by yourself, you should leave it to professionals and watch everything from a distance.
Your other alternative is the Closed School Loan Discharge program. This opportunity is available to former students who have been studying while the school decided to close. In case you qualify for both of these programs, it is advisable to choose the Closed School Loan Discharge program because you will get your response much faster than the Borrower’s Defense. Act now, and get rid of the debts Wyotech scams caused you.