Lori Meadows
Walden University is an online for-profit institution based in Minneapolis, Minnesota. The university has been accused of misleading students about the length of time it would take to complete its degrees and deliberately throwing obstacles in the way of students to slow down their progress and keep their student loan money coming in. As a result, former students of Walden University can apply for the Borrower's Defense Against Repayment program, which allows them to wipe out their outstanding student loan balance and potentially even qualify for a refund for any amount of money they've already paid back. The US Department of Education approved $150,000,000 in Borrowers Defense Against Repayment in 2018, which included individuals who attended Walden University.
| Characteristics | Values |
|---|---|
| University | Walden University |
| University Type | Online for-profit institution |
| Location | Minneapolis, Minnesota |
| Forgiveness Options | Borrower's Defense Against Repayment, Teacher Loan Forgiveness, Public Service Loan Forgiveness |
| Borrower's Defense Against Repayment | For borrowers who feel the university committed fraudulent or illegal practices to encourage them to take out student loans |
| Teacher Loan Forgiveness | For borrowers in the teaching profession for 5 academic years serving low-income families |
| Public Service Loan Forgiveness | For borrowers working for a qualifying public service organization |
| Action Required | Fill out a BDAR application on the student aid website |
What You'll Learn
Walden University's legal issues
Walden University, a private for-profit online university, has been involved in several legal issues and lawsuits in recent years. The university has been accused of misleading and defrauding students, particularly in relation to the length of time required to complete its degree programs.
In 2016, the Minnesota Office of Higher Education (MOHE) rejected Walden University's renewal application to participate in the State Authorization Reciprocity Agreements (SARA) due to the absence of an institutional federal financial composite score. This led to increased scrutiny of the university's financial practices.
Walden University has also been the subject of class-action lawsuits filed by former students. One lawsuit alleged that the university deliberately prolonged students' enrollments, resulting in significant debt without completing their degrees. Another lawsuit, filed in 2022, accused the university of "reverse redlining" by targeting its advertisements towards Black and female students while misrepresenting the costs and credit hours required for its doctoral degrees.
In addition, Walden University has been placed under "heightened cash monitoring" by the US Department of Education since 2016. This indicates potential financial instability or administrative capacity issues within the university.
The legal issues surrounding Walden University have had significant implications for its students, with many reporting struggles with high student loan debt and difficulties in completing their degrees. As a result, some students have sought loan forgiveness or discharge through the Borrower's Defense Against Repayment program, which is designed to forgive federal student loan debt for individuals who were misled or defrauded by their educational institution.
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Borrower's Defense Against Repayment program
The Borrower's Defense Against Repayment program is a federal student loan forgiveness program for borrowers whose schools violated certain laws or defrauded/misled students. The program also provides relief if a borrower's school closed before they could complete their degree.
The program was created to help people buried in debt from schools that weren't acting in their best interests, typically because the school did something illegal to convince the person to borrow money to attend their program. Walden University is one such school that has been accused of fraudulent activity.
In 2018, the Department of Education approved $150,000,000 in Borrower's Defense Against Repayment, which included individuals who attended Walden University. This means that if you attended Walden University, you could be eligible for loan forgiveness under this program.
To apply for the Borrower's Defense Against Repayment program, you need to fill out a BDAR application, which can be found on the student aid website. When filling out the form, you will need to provide the following information:
- Transcripts, registration documents, and enrollment agreements
- Promotional items received from the school
- Emails with school officials
- School manuals and/or course catalogs
- Any other documentation relevant to your claims
It's important to note that you don't have to place your loans in forbearance or have collections stopped to apply for this program. Additionally, you can still be eligible for loan forgiveness under this program even if the school you attended is not closed or you are eligible for forgiveness under another program.
Once you submit your BDAR application, your loans will automatically be placed in forbearance or stopped collections. While your application is being reviewed, you are not required to make payments on these loans. If you have loans that are in default, collections on your loans will stop, including wage garnishments and tax refund interceptions.
After submitting your application, there are a few possible outcomes:
- Application successful with a partial discharge of loans
- Application successful with 100% discharge of loans
It's important to act quickly if you're considering applying for this program, as there have been talks about eliminating it. However, if your application is submitted before the program is eliminated, you will be grandfathered in and still receive forgiveness.
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Teacher Loan Forgiveness
Teachers with federal student loans have several loan forgiveness programs available to them. Here is an overview of the Teacher Loan Forgiveness (TLF) Program.
The TLF Program forgives up to $17,500 of your Direct Subsidized and Unsubsidized Loans and Subsidized and Unsubsidized Federal Stafford Loans. To qualify for this program, you must have been employed as a full-time teacher at an eligible school for five complete and consecutive academic years. At least one of those years must have been after the 1997-98 academic year, and you must have been a new borrower on or after October 1, 1998.
Certain highly qualified special education and secondary mathematics or science teachers can qualify for up to $17,500 in forgiveness. Other eligible teachers can qualify for up to $5,000. Direct PLUS Loans, FFEL PLUS Loans, and Perkins Loans are not eligible for forgiveness through TLF. Only Direct Subsidized and Unsubsidized Loans and Subsidized and Unsubsidized Federal Stafford Loans qualify.
To maximize your forgiveness amount, you can apply for a TLF forbearance. If approved, you won't have to make monthly loan payments; however, interest will still accrue. Borrowers with eligible loans and a balance greater than the TLF amount they are applying for (either $17,500 or $5,000) are not eligible for this forbearance type.
Walden University Loan Forgiveness
If you attended Walden University, you may be eligible for the Borrower's Defense Against Repayment (BDAR) program. This program is designed to forgive federal student loan debt for individuals who would not have taken out these loans if it weren't for the loan service provider or the school they attended.
Walden University has been accused of fraudulent activities, including misrepresenting the length of time it takes to complete its degree programs and deliberately slowing students' progress to keep student loan money flowing into the school. If you feel that Walden University engaged in fraudulent or illegal practices that encouraged you to take out student loans, you should fill out a BDAR application.
When filling out the form online, you will need to provide transcripts, registration documents, enrollment agreements, promotional items received from the school, emails with school officials, school manuals and/or course catalogs, and any other relevant documentation.
Even if the school you attended is not closed or you are eligible for forgiveness under another program, you can still be eligible for loan forgiveness under BDAR. Once you submit your application, your loans will automatically be placed in forbearance or stopped collections. If you have loans in default, collections on your loans will stop.
After submitting your application, there are a few possible outcomes:
- Application successful with a partial discharge of loans
- Application successful with 100% discharge of loans
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Public Service Loan Forgiveness
Walden University is a participating institution certified by the U.S. Department of Education, which offers Federal Direct Loans to help students fund their education.
The Public Service Loan Forgiveness (PSLF) Program is a federal student aid program that allows participants who work for a qualifying public service organisation to make 120 monthly affordable college loan payments for 10 years and then get the balance of their undergraduate or graduate school loan forgiven.
To be eligible, students must receive their college loans through the Federal Direct Loan program, which provides loans directly to students at participating schools, such as Walden University. The following eligible Federal Direct Loans are available:
- Subsidized loans, which are need-based college loans available to undergraduate students and do not require a credit check. The government pays the interest on the loan while a student is enrolled at least half-time in an academic program.
- Direct unsubsidized loans, which are available as undergraduate and graduate school loans and also do not require a credit check. However, these loans are not need-based and require students to pay the accruing interest while pursuing a college degree.
- Graduate Plus Loan, which is a graduate school loan that does require a credit check and can be used after a borrower has reached limits on the unsubsidized loans.
To qualify for loan forgiveness through the PSLF program, you need to work (in any type of position) for an organisation that the federal government designates as an employer dedicated to working in the public interest or for the public good. Qualified employers fall under these categories:
- Federal, state, local, or tribal government agencies.
- Tax-exempt nonprofit organisations under 501 (c) (3) IRS code or public charities, private foundations, or private operating foundations.
- Other nonprofit organisations not under 501 (c) (3) IRS code that provide the following types of public services: law enforcement, public interest law service, early childhood education, public health, and public education.
Those volunteering for AmeriCorps or the Peace Corps while earning a degree can also qualify for loan forgiveness.
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Income-Driven Repayment Forgiveness
The Public Service Loan Forgiveness (PSLF) Program is a federal student aid program that allows participants who work for a qualifying public service organisation to make 120 monthly affordable college loan payments for 10 years and then get the balance of their undergraduate or graduate school loan forgiven.
To be eligible, students must receive their college loans through the Federal Direct Loan program, which provides loans directly to students at participating schools, such as Walden University.
The Standard Repayment Plan for loans in the federal student aid program requires students to pay a fixed instalment amount over a 10-year period. However, to qualify for eventual loan forgiveness through PSLF, students must participate in a monthly "income-driven" repayment plan. These repayment plans allow students to pay an affordable lower instalment amount based on their income over a longer period of time—between 20 and 25 years.
In general, under these income-driven plans, you will need to make qualifying monthly payments based on a manageable percentage of your discretionary income, ranging from 10% to 20% over a 20- to 25-year period, depending on the specific plan. The two main income-driven payment plans are PAYE (Pay as You Earn) and IBR (Income-Based Repayment), which base instalments on a percentage of income and cap it at an amount that is never higher than what you would pay under the 10-year standard pay plan.
The REPAYE (Revised Pay as You Earn) and ICR (Income-Contingent Repayment) plans, on the other hand, are based on current income and could be higher than the standard payment amount, depending on the size of your income.
What Types of Loans Qualify
- Subsidised loans, which are need-based college loans available to undergraduate students and do not require a credit check. The government pays the interest on the loan while a student is enrolled at least half-time in an academic program.
- Direct unsubsidised loans, which are available as undergraduate and graduate school loans and also do not require a credit check. However, these loans are not need-based and require students to pay the accruing interest while pursuing a college degree.
- Graduate Plus Loan, which is a graduate school loan that does require a credit check and can be used after a borrower has reached limits on the unsubsidised loans. This is available to graduate students who are enrolled at least half-time and have a good credit rating. Students can borrow up to the cost of attendance minus the financial aid they already receive.
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Frequently asked questions
Walden University mentions two loan forgiveness programs on its website: Teacher Loan Forgiveness and Public Service Loan Forgiveness. Teacher Loan Forgiveness is for borrowers who have been teaching for 5 academic years and serving low-income families. Public Service Loan Forgiveness is for borrowers employed within a public service organization.
The Borrower's Defense Against Repayment program is a federal program that forgives student loan debt for individuals who were misled or lied to by their school. Walden University has been accused of such practices, and its students may be eligible for this program.
You can apply for the Borrower's Defense Against Repayment program by filling out a BDAR application on the US Department of Education website. You will need to provide transcripts, registration documents, promotional items received from the school, emails with school officials, school manuals, and any other relevant documentation.
Once your application is submitted, your loans will automatically be placed in forbearance or stopped collections. If your application is approved, you may receive a partial or full discharge of your loans.
