ICYMI: Rep. Susie Lee fights for former for-profit school students who could lose out on student loan forgiveness

June 20, 2019

ICYMI: The Chronicle of Higher Education: Former Dream Center Students Could Lose Out on Loan Forgiveness Thanks to Education Dept.'s Mistake

The Education Department's website is providing incorrect information about the now-shuttered Dream Center chain of for-profit colleges — a major mistake that could prevent some displaced students from getting the loan forgiveness they are entitled to.
During questioning of an Education Department staff member, Rep. Susie Lee, a Nevada Democrat, complained that two students at the Art Institute of Phoenix had had their debt relief applications improperly rejected. The rejection by the loan servicer was based on the department's faulty website information, Lee said.
"It's just hard to overstate the personal risk and stakes here," Lee said. "Being told that they don't qualify for full discharge, when in fact they do, is the difference between a lifetime of financial ruin or a lifetime of freedom."
For students who attend a college that closes, a loan discharge can be a big step toward rebuilding their lives. There's no way to recoup the time spent taking courses, but the discharge at least wipes away their federal loans, since the students didn't get the opportunity to finish their academic program.
The one catch: Students must have attended the campus within 120 days before closure. Lee told the Education Department that the two rejected student applications were part of a larger mistake: The department's website has the incorrect closure date for multiple Dream Center locations.
Lee said the website problems are a reflection of the department's overall "improper handling" of the Dream Center collapse. On Facebook, former Dream Center students have complained of other bureaucratic mix-ups that have prevented their loan-forgiveness applications from getting approved.

Issues: Students & Education