The U.D. Education Department agreed to cancel around $6B in debt for about 200,000 students allegedly frauded by their schools, including colleges like the University of Phoenix and DeVry University. 

This guide will explore the University of Phoenix loan forgiveness and other perks to keep in mind. 

Let’s begin. 

University Of Phoenix Lawsuit: Sweet V. Cardona 

In a case known as Sweet v. Cordona, a federal judge ruled that some financial institutions had engaged in “predatory student lending” and ordered them to cease operations.

Education Secretary Miguel Cardona says they are glad to have worked with the plaintiffs to reach a settlement that would provide billions of dollars in automatic relief for about 200,000 students.

He believes that will settle plaintiffs’ claims in a fair and impartial manner for all parties.

These targeted debt reduction programs are in response to demands that Biden eliminates student loans totaling at least $10,000 for all borrowers. 

It’s widely anticipated that a decision will be made soon because the existing pause on interest and principal payments on federal student loans is set to expire on August 31.

The Chances That Your Student Loan Will Be Forgiven

On its website, the U.S. Education Department claims that, in some situations, it’s willing to waive or cancel student loans. However, the university’s collapse, the use of fraud by the university, and many other things may be among the reasons. 

Usually, you would file for student loan forgiveness programs. However, to be released from the University of Phoenix loan forgiveness, you must demonstrate that the university committed those fraudulent activities against you.

There is a chance of loan cancellation when the institution receives a fake certification. Students’ worries, however, demonstrate that the Education Department isn’t doing enough to promote loan discharge. 

The truth is that some students believe that the stringent procedural requirements and eligibility requirements are part of a scheme to prevent them from receiving loan forgiveness.

Closed School Loan Discharge 

If you attended a closed school, there’s a chance of your loan being forgiven. This program can assist students with FFEL, Perkins Loans, Direct Loans, and other loan programs. 

You can be eligible for the program if:

• The school closed while you were enrolled.
• You transferred your credits to a different institution with a comparable program. 
• You spent 120 days at the University of Phoenix from June 20, 2014, or later. There’s still a chance if you dropped out of class during this period. 

How Can You Get Your Loan Discharged?

The University of Phoenix consented to pay $191 million under the settlement’s stipulations in exchange for the remission of student loans. The majority of the loans that students owe directly to the UOP were the focus of this settlement. 

Students can refinance federal student loans through BDAR, which we’ll go through in the next section.

How To Get A Loan Discharge Through BDAR

According to the Borrower’s Defense law, students can invoke loan discharge in situations when the school committed fraud against them. These fraudulent acts include rules violations, misinterpretations, and misconduct, among other things.

With the University of Phoenix, students are entitled to submit a BDAR claim and receive a loan discharge. 

You have the right to mention those details in your BDAR application. And that’s because the institution gave those individuals private student loans while telling them that the higher education programs they enrolled in were the best.

In general, you must either establish that the University of Phoenix made false or deceptive statements that caused you to obtain the loan in the first place or accuse them of doing so. You have to prove that they lied about: 

• Graduating rates 
• Rates of job placement
• and numerous more statistical measurements.

You only need to write a BDAR application and submit it to the appropriate organizations if you experience such a situation and want to eliminate the enormous loan debt. 

Former University of Phoenix students will receive a full loan discharge if the Education Department grants their request, which is terrific news.

Final Thoughts 

There are particular considerations that you must take note of while you write your BDAR application. First, you must express that you used the loan to attend the University of Phoenix. 

In doing so, you essentially admit that the university’s deceptive marketing tactics were the critical factor in your choice. In other words, conclude that absent those fabricated claims, you would never enroll at that university. 

Keep an eye on this section because the Education Department won’t approve your BDAR application if you can’t manage to entirely and thoroughly cover the issue.