Founded in 1965, Colorado Technical University includes undergraduate, graduate and doctoral programs. It mainly specializes in business, technology, and management spheres where one can get many degree programs entirely online. The university has two campuses; in Colorado and Aurora. Just a few years ago, the university looked very promising. The Colorado Technical University class action lawsuit seemed irrelevant. They even ranked in the first place for degree programs for Vets, according to Military Times Magazine, in 2013,2014 and 2016. However, things started to change fastly in the beginning of 2018. Their misrepresentation caused the organization $500 million through canceling student loans.
Hence, if you are also a victim that Colorado Technical University Lawsuit claims, you can get your student loans written off. For this aim, you also need to fit some other eligibility criteria which we will discuss in the later section. If you have less information and expertise in the forgiveness program, Student Loans Resolved is also here to guide you. We ensure the smooth process to cancel your loans; however, we also advise you to be careful next time before taking loans.
Beginning of Colorado Technical University class action lawsuit
As we mentioned before, Colorado Technical University is the subsidiary of Career Education Corporation. CEC is a for-profit provider of higher education. Its most famous two brands are CTU and American Intercontinental University. They serve up to 34000 students in general.
State Attorneys General started the investigation in 2014. They claimed that Career Education Corporation misrepresented its perspectives. In turn, the Career Education refused all claims and assert that they provide quality education. Their alleged main target is closing the gap between student skills and the requirements of employers. However, the Colorado Technical University class action lawsuit is not about the quality of education. It is about the promotion methods that the university uses to attract potential students.
There are many reasons why CEC faced a class-action lawsuit. In general, they deceived the students about their credibility. First, these universities misinformed potential students about the rate of job placement and the real cost of getting a degree. Their primary strategy was informing students about the cost per credit hour. Class action lawsuit adds that the corporation made the admission representatives mislead students intentionally. Those representatives claimed that students would be able to transfer some credits. However, they could not. Besides, their deceptive practices also include emotionally pressuring students to enroll. Those students falsely believed that their program is very capable of getting them a well-paid employment opportunity. But many of them lacked sufficient accreditation. In general, the university created an incorrect perception of the benefits of the programs, according to CTU online lawsuit.
Settlement of Colorado Technical University Class action Lawsuit
Colorado Technical University lawsuit claimed that unfair practices of CEC were not only hurting students but also wasting the funds of taxpayers. As a result, the corporation agreed to cancel the loans of nearly 180000 former students. Those loans were worth almost $500 million. Besides, they decided to stop misrepresentation of accreditation, job placement rates, or credit transfers. Also, they will not utilize the programs that do not promise state licensure after graduation. Among those things, the corporation will provide disclosure with real costs of obtaining a degree and rates of student loan debt, default, job placement, etc.
The settlement also included that students must complete an electronic disclosure about the financial impact. This platform informs students about the expected debt to income ratio after graduation. In this way, students could make an unbiased decision about enrolling in the program. Besides, Career education was prohibited from pressure admission representative or record conversations with potential students. Lastly, they should provide a risk-free trial period. This period would protect undergraduate students with less than 24 credits. The corporation did not accept any of the claims against them. However, they agreed to obey and perform all these points of settlement.
Student Loan Forgiveness
One of the reasons that make Student Loan Forgiveness applicable is the misconduct and deceptive practices of the educational organizations. While Career Education did not agree with any of the claims, they accepted to settle the Colorado Technical University class action lawsuit. Therefore, the administration decided to cancel $493.7 million of student debts.
The forgiveness program is for the previously attended students. Hence, if you attended Colorado Technical University before December of 2013, you can be eligible for forgiveness.
There exist two ways for you to get out of the debt. One is full student debt discharge, and another is a repayment plan. You should keep in mind that every case is different. If you want to get your loans canceled, you should let go of some time and energy. Besides, if the process seems very confusing to you, you can always get expert help from Student Loans Resolved.
Borrowers Defense to Repayment is a state program that protects student’s wellbeing. It ensures you get forgiveness if your schools engage in fraud, misinformation about, false advertising, etc. The main idea is that the university deceived you into making you enroll in their programs. In Colorado’s case, they also used fake rates to attract students. Hence, Borrowers Defense to Repayment can be applicable.
To be eligible, the main thing is proving that the school manipulated you and explaining why you deserve student loan forgiveness. First, you need to fill a claim. Then integrate all fraudulent activities to Colorado Technical University class action lawsuit. You should be able to indicate how the misconduct of the university hurt your educational and professional life.
To benefit from Borrower Defense, borrowers need to fill an online application form or send the PDF version to the email of the Department of Education. You can add any other documents. These documents can be promotions materials given by the university or emails with representatives. After reviewing your case, the loan servicer will contact you. This repayment is applicable to federal loans, including Parent PLUS loans.
Income-Based Repayment Plan
Another way that benefits students with loans after CTU online lawsuit is a repayment plan based on income level. The Department of Education provides various repayment choices to aid students in managing their burden. If you struggle with your loans, you can also apply for this program. Your new payment will not be higher than what you usually paid. The lifetime of the program is a maximum of 25 years. The advantage of the Income-based Repayment plan is the following. After 300 payments of this lifetime, if your student loan debt is still not closed, they write-off any excess liability. Besides, in a lot of cases, graduates pay nothing. That is because their discretionary income cannot even meet the minimum amount required for income Based repayment.
To apply for a repayment plan, you need to fill an online application or in the paper form to your loan servicer. If you have more than one loan servicer, you need to submit a request to each of them. The servicer needs to know your monthly income. Thus you should also provide you income document- either Adjusted Gross Income or any alternative.
Whether you want to apply for Borrower Defense or Income-Based Repayment Plan, you need to provide all the required documents. In the first case, you should prove that the university deceived you with any means, including their emails, promotional materials. If you are a graduate student who is eligible for the Colorado Technical University class action lawsuit settlement, you need to sacrifice time and energy to get relieved. However, the student debt relief process is challenging, attention-requiring, and you have only one shot. Therefore, you might need an expert in this field who can guide you through documentation and answer your questions. In this stage, Student Loans Resolved steps up to lend a hand to you. Contact us now to get the help of specialists immediately.