Many people struggle with debt problems, which sometimes include unpaid student loans. While many higher learning institutions offer a pathway to earn a living, some for-profit colleges misled or deceived students into taking loans to pay for programs only to learn they have nothing to show for it except a mountain of debt.
As a result of the recent scrutiny of for-profit schools, the US Department of Education is recommending that the college accreditor that regulates hundreds of for-profit schools should have it’s oversight powers terminated.
ACICS or the Accrediting Council for Independent Colleges and Schools, who is charged with ensuring the quality of colleges that receive federal student aid, has recently come under sharp criticism for strikingly poor outcomes of the colleges it accredits in terms of graduation rates and employment prospects of their graduates.
Many of the ACICS’s critics point to the stunning collapse of a large for-profit college chain, which ACICS continued to accredit up until the day the school declared bankruptcy. Despite numerous ongoing lawsuits and investigations into the school’s predatory and misleading tactics, ACICS did nothing, thereby allowing students to continue to procure debt with little to expect in return.
Fortunately, new regulations (see our previous blog) may provide a pathway for unwitting victims of some for-profit colleges to have their student loans forgiven. The Education Department plans to provide a process for borrowers who believe they were misled about job prospects or otherwise deceived to cancel their debt.
If you are struggling with a difficult financial situation, bankruptcy attorney Charles E. Covey can help you choose a strategy to gain a financial footing. While bankruptcy is not the right fit for every situation, sometimes it can provide the opportunity to get a fresh start. Contact our offices today for an initial consultation.