This is totally normal and legal. This sounds pretty crazy though as Ive never heard of a 10 year deferment, EVER. Documented cases of their actions have already gone through court. Got laid off during recession and no work for 2 years and didnt hear anything until last month and now sent garnishment letter again. I was also promised that they would help me find employment in my field which they did not. Kaplan University Kaplan was one of the worst investigated by the GAO, with 69 percent of students in bachelor's degree programs withdrawing, and rising default rates. Id pursue a Borrowers Defense to Repayment Discharge if I were you. I have tried to get my transcript as well as contact the Navient which has all my loans on deferment to get them to lump them in one so I can at least improve my credit rating but Im at a loss! Theyre both good programs in that they both have the ability to wipe out your student loans and reimburse you for past payments. How did they mess up your loans? Wage Garnishments go until everything gets fully sorted out, and that can take time, but its different in every case. Thats the only option that I think youll have here, so Id pursue it. How will this work when applying for the BDD? The whole story about your Mom isnt honestly going to help your case at all. Nope, theres no time limit for BDAR applications, but Id get your app in as soon as possible because its taking forever to hear back from the Department of Education on the status of applications. Thats when they told me that I didnt have to worry about any classes that werent necessary for medical transcription and I could stop attending them. Loans are put into Deferment automatically as the DOE analyzes the application and determines whether or not to accept or reject it that may be whats happened here? Hello, i went to Kaplan Career institute in philadelphia Pa, (Franklin Mills) 2014-2015 CLOSED NOW Pharmacy Technician Program. Im not a representative of the US government. i felt the school was a joke and not taking my education i was paying for seriously. The borrower defense to loan repayment forgiveness rule is a federal regulation issued by the U.S. Department of Education that allows federal direct student loan . What can I do to help her? Is this program still available? Did the school seem to care about your academic achievements or were they only interested in the student loan money? However I still ended with $14,000 in student loan debt. It was predominantly a distance learning institution, maintaining 14 ground locations across the United States. I cant even find my loans nor can I find any records of the school? In fact, Betsy DeVos, our Education Secretary, has been trying to eliminate the Borrowers Defense program entirely ever since she was appointed by President Donald Trump, who also seems to be against BDARs existence. Exactly what was the school found guilty of? Kaplan keep rising the tuition up on me, saying its such and such price per credit. March 24, 2021. Here is what the school has done: Changing grades Enrolling unqualified students Any suggestions I would greatly appreciate. Yes, unfortunately, you will end up owing taxes on the amount of forgiven student loan debt. I was however unable to attend graduation due to a family health crises that required me to temporarily relocate out of state. The way it works is that it provides an avenue for you to get your loans legally discharged if you can prove that they were only taken out because the school, student loan lender or servicer did something fraudulent that convinced you it was a good idea to borrow the money for their program in the first place. Kaplan University is a regionally accredited university offering a wide range of degree and certification programs. At the end of the semester, they proceeded to start expulsion proceedings, which I had to argue with them over because the classes I had failed (on their recommendation) were not part of my major. The university maintains 10 campuses in the states of Nebraska, Maryland, and Iowa, as well as Learning Center in Milwaukee. After all that I spent 8 years with loans in deferment as I could never get anyone to assist me in finding a better place of employment. The lawsuit alleges that Kaplan enrolled unqualified students, inflated their grades so they could stay enrolled . Lawyers representing former students of Kaplan Career Institute in Massachusetts have sued the U.S. Department of Education, alleging an unlawful and unconscionable failure of the Department to cancel the students' federal loans seven years after the Massachusetts attorney general settled with the school over charges that it deceived and However, when I went to apply at childcare centers I was asked where was my classroom experience. Toggle Menu. I do know of some frauds things that occurred while I was enrolled but dont have proof. They also reduced the amount of transfer credits after seeing how many credits I had to transfer in after I had already started coursework and applied for loans. To this day in 2019 I still can not find a decent paying job using my degree. Your thoughts would be greatly appreciated! The things you explained sound like a bad experience and maybe a customer service problem, but they dont sound like illegal behavior, so I dont think that youd qualify for a BDAR Discharge if those are the only reasons you listed in an application. Of the dozens of group claims submitted by attorneys general in the past six years, only one has been approved by the department. This information comes from the Treasury Dept. False Claims Act Lawsuits. Hi there. I need help before they try to garnish my wages again. If you're eligible for an automatic discharge, the U.S. Department of Education (ED) will notify your loan servicer which should then, in turn, notify you. I had federal pell grants i dont think i had any private. I, also paid for an official transcript in 2017 and never received one. Um, this is not the way to tell your story if you want a BDAR Discharge. To help you brainstorm ideas for things you could include on your application, lets take a closer look at what exactly Kaplan University was doing that got them into trouble in the first place. I do not have much documented proof is there anything I can do? If thats all that you can come up with for a BDAR application then it will be denied. more was taken and this year I still owe $1,550. I do not think that suggesting she finance via Private lenders would qualify for BDAR, especially because BDAR is only available to people with Federal Student Loans. Thanks for all your hard work. Purdue University Global. I was worried about payment being an issue but I was told that everything was paid for it was just a glitch in the system this went on for the entire second and third semesters at the end I got fed up and tried to transfer to a different online school but by the time I was able to take a class I was so defeated and frustrated with what I went through I just gave up. Before Purdue University acquired Kaplan University, a handful of lawsuits were filed against it. March 13, 2008. You need to really emphasize the point that you would never have taken out a student loan to attend Kaplan University if they hadnt misrepresented the quality of their educational programs to you, and you need to be specific about what things they lied to you about in order to convince you to take out the loan (things like job placement rates, total costs, potential salaries for graduates, or whatever you were promised). Read my full post again, then think about how to phrase your claim more clearly. They said I would get a job in my field and have yet to find something. Advice for the relationships in your life and how to boost your own well-being. they told me Theyll Make sure ill pass the certification exam but our instructors were getting fired or leaving the school .Most exams were open book. My question is would any of this lawsuit apply to me? Are you talking about the Borrowers Defense to Repayment Program? A judge in the case said the department has a legal obligation to take action on group claims brought by state attorneys general, an argument the Kaplan borrowers are leaning on as they seek approval of their own application. Sometimes the loans just disappear through administrative issues, like losing paperwork, computer problems, etc. A class-action lawsuit by fraud victims of for-profit colleges says the Education Department has been assessing their claims far too slowly, with some petitioners still awaiting relief six years later. I went to Kaplan in 2013-2016. You can find the official US government application for the Borrowers Defense program here. To skip to the section of this Guide where I go through each of these programs in detail, please click the hot links below. Why? This was a HUGE demotion! Retention. I couldnt even renew my license that i got to allow me to work in the state as an electrician. Theyre SOMETIMES included in Federal benefits programs and sometimes excluded. Kaplan is still owned by Graham Holdings Company, a for-profit company traded on the NASDAQ under GHC. Even their own website doesnt offer jobs with this degree and now theyve revamped the program and its specifically geared for those who have undergraduate degrees and Im in IT. I was also told they were and accredited school and i can go anywhere if i wish to transfer even to my local community college, which is a complete lie. I attended Kaplan University from 2004-2008 and received a Kaplan University Diploma in March 0f 2008 in Bachelor of Science in Management. was already owned by Kaplan an just changing names.. That meant there were up to an additional 80 credits that my financial aid paid for that now I was not going to be able to get credit toward the original grandfathered claused program as I was promised at the beginning. You did not complete all your coursework at Kaplan University, but failed to receive your diploma prior to the schools closing. Not only that but now I receive 500.00 a mo. that Im sure they are going to take. No money and no job and informed that I can never apply for another student loan Id I fight this. Youre going to have to figure out exactly what you were charged for, what you received in assistance, etc. Tim's experience struggling with crushing student loan debt led him to create the website Forget Student Loan Debt in 2011, where he offers advice, tips and tricks for paying off student loans as quickly and affordably as possible. Kaplan University. I thought I was qualifying for financial aid which upon graduating would not have to be paid back however all of my loans are student loans about 70 thousand dollars and hitting my credit separately! I graduated with an associates in business management but never recieved my diploma from them due to them messing up my loans and saying I had to pay a bunch back prior to receiving my diploma. You can find the official Borrowers Defense program page here and the official Closed School program page here. Skill Assessments. I was at Kaplan in 2010 nor 2011 npr 2012 but I have charges. Lesley Fair. If you dont qualify for a Borrowers Defense Discharge, then the good news is that you may have another path to forgiveness via the simple fact that Kaplan is no longer operational. It means the schools would accept applications from anybody, including people who had no hope of ever graduating, because they wanted their money. In 2007, a class-action lawsuit was settled for $30 million by Kaplan and BarBri, a company offering bar exam preparation. [4] Are you getting bills? At an income tax rate of 30%, youd need to pay the IRS $30,000, but the worst part about it is that the IRS typically wants you to pay them in a single, lump-sum payment all at once, unlike student loans which are broken up and stretched out over a period of years. You could either try to pursue a Borrowers Defense to Repayment Discharge against your school, or you need to find a way to get your loans back on track. If youre a former student of Kaplan University seeking student loan forgiveness then there are two different programs available to you, the Borrowers Defense To Repayment and the Closed School Loan Discharge program.