Twenty-five years following the closure of a chain of schools owned by Wilfred American Educational Corporation, the Department of Education has decided to forgive the difficult-to-pay federal student loan debts that numerous students owe after attending the schools. Over 36,000 students -- primarily made up of low income earning, female immigrants -- attended the schools, racking up extensive, difficult-to-pay student debts.
According to an attorney from a legal assistance group representing the students, the Department of Education has been garnishing wages and collecting on the student loans for decades. However, with the new agreement to award debt relief to the students, they will finally be freed from the loan burdens.
This case can be considered a win against the numerous corrupt, for-profit educational institutions that defraud vulnerable, low-income students with the hope of a better future. There are many more cases of this type being pursued, as defrauded students burdened by difficult-to-pay educational loans try to get debt relief. There are so many students who completed their educations that their loans paid for, but never received the financial benefits or career advancements that they were promised by the educational facilities.
Hopefully, this recent settlement with regard to the Wilfred Academy's vocational and beauty schools will help set an example for further debt relief settlements in the future. In the meantime, if you or a loved one are burdened by student loans that you can't pay off, you may want to talk with a King County debt relief attorney to talk about strategies for resolving this burden and getting your debt behind you once and for all.
Source: New York Times, "U.S. Agrees to Forgive Debt for Students Defrauded by For-Profit Chain," Emily S. Rueb, Aug. 09, 2017