American Intercontinental University has been the target of a lawsuit that it has awarded degrees to students who have not satisfied the necessary academic criteria.
According to a lawsuit brought by two former university employees, AIU was accused of granting degrees to students who had not finished the necessary curriculum.
However, the claims made in the lawsuit have been refuted in a statement by AIU. According to the school, it has always complied with state and federal laws governing degree achievement.
Let’s learn more about the American Intercontinental University lawsuit and what the Education Department is doing about it.
Let’s begin.
Terms Of The American Intercontinental University Lawsuit
A lawsuit settlement ordered AIU to stop collecting the student loans it had provided.
Additionally, the lawsuit demanded that the university Credit Beraaus take away the outstanding loans from credit reports.
It was an excellent chance for borrowers who obtained a loan from Career Education Corporation to attend AIU. You would pay off your entire debt if you could not stick to a repayment schedule for student loans.
The Education Department Has Agreed To Forgive $6 Billion In Student Loans
The U.S. Education Department agreed to cancel the student loan debt of around 200,000 borrowers, resulting in a total debt cancellation of approximately $6 billion. Debt cancellations might affect more than 60,000 people.
Almost all the schools included are vocational programs or for-profit colleges.
According to the class-action complaint brought by Sweet v. Cardona, numerous borrower defense claims for debt cancellation were overlooked by the U.S. Education Department. This led to the settlement.
Borrower Defense To Repayment
A federal government program known as borrower defense to repayment enables you to discharge some or all of your student debt if your school deceived you or broke specific state laws.
You must demonstrate that your program caused specific financial harm, such as losing your ability to find employment.
As you can see, if you want to pay off your student loans, the discharge program is a fantastic choice. This student loan discharge was mostly available to those who attended one of the well-known for-profit universities and took out a sizable student loan to pay for their tuition.
However, remember that the Education Department receives many applications; it can take two years to hear back. So sending the request and then waiting for a response is not the ideal course of action.
How To Know If You Qualify For Borrower Defense To Repayment
No action is necessary on your part to join the Sweet v. Cardona class-action lawsuit. If you applied for borrower defense on or before June 22, 2022, and you haven’t heard from anyone or received a form refusal in or after December 2019, you are a member.
Borrowers from numerous schools, including American Intercontinental University, are eligible to participate in the class action lawsuit at no expense.
As of June 22, 2022, 264,000 individuals in the class have pending borrower defense applications.
About 200,000 people who attended one of the roughly 150 colleges will have their loans wholly discharged, receive a return of their tuition payments, and have their credit repaired.
Significant Misconducts By AIU
The U.S. Education Department has discovered vital signs of wrongdoing by these institutions and has highlighted many applicants for borrower defense.
The 64,000 additional students in the class went to schools, not on the following list. Depending on how long their applications have been pending, they will receive customized answers to their borrower defense requests within rolling timelines.
How To Apply For Borrower Defense To Repayment
You’ll need your FSA ID, the school’s name, the courses you’re enrolled in, enrollment dates, the dates of your enrollment, and proof that you qualify for borrower defense to apply.
You can apply online or by completing a PDF and sending it to the company via email or regular mail. It will take around 30 minutes to complete the application.
Borrower defense is available to a small number of borrowers. But if you think your school misled you, it doesn’t harm to apply and find out.
Final Thoughts
For the borrower defense, you must show that your school provided incorrect information about your student loans to qualify. Showing fraudulent or false advertising for American Intercontinental University could help prove your case.
You should focus on proving that AIU acted illegally toward you as an individual. This illegal behavior has led to your decision to take out the student loan. Only Federal Student Loans will be eligible for the student debt discharge program.
However, you must adhere to even more stringent guidelines to qualify for the program.
