Ibrahim Gardner
Walden University has been accused of fraudulently misrepresenting the time required to complete its degrees, which has led to many students seeking loan forgiveness. The university offers federal student aid resources, including subsidized loans, to help students fund their education. To qualify for loan forgiveness, students must participate in a monthly income-driven repayment plan and work for a qualifying public service employer. Students can also apply for a Borrower's Defense Discharge, which can result in 100% loan forgiveness and a refund for any payments already made.
| Characteristics | Values |
|---|---|
| Student Loan Forgiveness Options | Public Service Loan Forgiveness (PSLF), Borrower's Defense Program (BDAR), Student Loan Consolidation, Student Loan Refinancing |
| Student Loan Forgiveness Requirements | Work for a qualifying public service employer, participate in a monthly "income-driven" repayment plan, link school's legal troubles to your Borrower's Defense claim |
| Student Loan Forgiveness Eligibility | Students must receive college loans through the Federal Direct Loan program |
| Student Loan Forgiveness Benefits | Remainder of the loan canceled or forgiven, potential refund for any amount of money already paid back |
| Student Loan Forgiveness Application | Fill out the Borrower's Defense application, submit a Walden BDAR application, submit a Free Application for Federal Student Aid (FAFSA) |
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What You'll Learn
Walden University accused of fraudulently misrepresenting degree completion times
Walden University has been accused of fraudulently misrepresenting degree completion times. In 2016, Jennifer Wright, a veteran and schoolteacher, sued Walden University, claiming that she was misled about the time and money required to obtain an advanced degree online. She alleged that the university prolonged her enrollment for years with constant staff turnover and changing study requirements, leaving her $224,000 in debt without a degree. Wright's lawsuit was the second filed by former and current students against Walden and its parent corporation, Laureate Education.
An NBC News report in the same year featured interviews with over two dozen former and current students who felt victimized by Walden's practices and burdened by large student loans. A 2015 study found that Walden students had one of the highest debt loads of any school in the U.S. Additionally, a 2012 Senate investigation of for-profit schools described an "enrollment-driven culture" at Walden, suggesting that the university prioritized student recruitment over other aspects of education.
In 2022, a federal court case accused Walden University of preying on minorities and women by misrepresenting the costs and credits required for an advanced degree. The lawsuit claimed that Walden intentionally prolonged the completion of a capstone project, requiring students to re-enroll for semesters and pay additional tuition. The university was also accused of overcharging students by more than $28.5 million.
These allegations have led to investigations by the Department of Justice and other government agencies into potential violations of the federal False Claims Act. The investigations are focused on whether Walden misrepresented its compliance with its Program Participation Agreement with the U.S. Department of Education and made false advertisements to students about the content, cost, and requirements of its academic programs.
While Walden University has not been found guilty of any fraudulent activities, the investigations and lawsuits raise concerns about the university's practices and their impact on students' financial well-being. It is important to note that students struggling with student loan debt from Walden University may have options for loan cancellation or forgiveness through borrower defense applications and public service loan forgiveness programs.
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Borrower's Defense Program (BDAR)
The Borrower Defense to Repayment program can forgive a borrower's federal student loans if they were defrauded or misled by their school. Walden University is a participating institution certified by the U.S. Department of Education, and offers federal student aid resources to help students fund their education.
To be eligible for the Borrower Defense Program (BDAR), either of the following must be true:
- Your school intentionally misled you concerning its educational programs or job placement rates.
- Your school broke state laws, such as consumer protection statutes.
You must prove that your institution engaged in fraud or broke a state law. You can submit a claim whether or not your school closed and even if you’re eligible for other loan forgiveness programs. However, borrower defense does not work for private loans or costs paid out of pocket.
For federal loans disbursed after July 1, 2017, but before July 1, 2020, you must ask for a reimbursement of previous payments within six years of disbursement if the borrower defense is based on “breach of contract” or “substantial misrepresentation”. There is no time limit for a refund if your claim is based on a “judgment against the school”.
The PSLF Program is a federal student aid program that allows participants who work for a qualifying public service organization 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 qualify for loan forgiveness through the PSLF program, you need to work for a qualifying public service employer.
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PSLF Program
The Public Service Loan Forgiveness (PSLF) Program is a federal student aid program that allows participants to get their college loans forgiven if they work for a qualifying public service organization. Walden University is a participating institution certified by the U.S. Department of Education, which offers a variety of federal student aid resources to help students fund their education.
To be eligible for the PSLF program, 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 eligible Federal Direct Loans available include subsidized loans, which are need-based college loans available to undergraduate students and do not require a credit check.
To qualify for loan forgiveness through the PSLF program, students must work for an organization that the federal government designates as an employer dedicated to working in the public interest or for the public good. Qualified employers include federal, state, local, or tribal government agencies, and tax-exempt nonprofit organizations under 501 (c) (3) IRS code or public charities. Other nonprofit organizations not under 501 (c) (3) IRS code that provide public services such as law enforcement, public interest law service, early childhood education, public health, and public education also qualify.
The PSLF program allows participants 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 qualify for eventual loan forgiveness, students must participate in a monthly "income-driven" repayment plan, which allows them to pay a lower installment amount based on their income over a longer period of time, ranging from 20 to 25 years. The two main income-driven payment plans are PAYE (Pay as You Earn) and IBR (Income-Based Repayment), which base installments on a percentage of income.
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Student loan consolidation
Consolidation and refinancing are sometimes used interchangeably, and while they both combine or replace existing student loans into a single new loan, there are important differences. Consolidation may give borrowers access to additional income-driven repayment plans and Public Service Loan Forgiveness (PSLF). However, it is generally not a money-saving option, as the resulting interest rate is a weighted average of prior loan rates, rounded up to the nearest one-eighth of a percent.
To apply for a Direct Consolidation Loan, you can log in to studentaid.gov and access the application. You will need to choose which loans you want to consolidate and select a repayment plan. It is important to note that only federal student loans can be consolidated through a Direct Consolidation Loan, and there is no application fee for this process.
Now, regarding student loan forgiveness for Walden University specifically, there have been mentions of a pending decision and potential refunds or reduced balances for those with borrower defense applications against Walden University. Additionally, Walden University does offer Federal Direct Loans, which can help students qualify for possible loan forgiveness through the PSLF program. This program allows participants who work for a qualifying public service organization to make affordable monthly payments for 10 years and then get the remaining balance of their undergraduate or graduate school loans forgiven.
Therefore, while student loan consolidation may not directly lead to loan forgiveness, it can provide benefits such as streamlined repayment and access to additional repayment plans. On the other hand, loan forgiveness programs like PSLF, combined with Federal Direct Loans, could be a viable option for Walden University students seeking loan forgiveness.
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Student Loan Relief Helpline
If you are struggling with student loan debt from Walden University, there are several options available for relief.
Borrower's Defense Program (BDAR)
The Borrower's Defense Program allows former students of Walden University to eliminate their debt by wiping out the entirety of their outstanding student loan balance and potentially qualifying for a refund for any amount already repaid. To qualify for a discharge or refund, you must link the school's legal troubles to your Borrower's Defense claim. Walden University has been accused of fraudulently misrepresenting the time required to complete its degrees and deliberately creating obstacles to slow down students' progress, which are illegal behaviours. Therefore, by stressing the university's legal problems and tying them to your own experience, you can make a strong case for loan forgiveness.
Public Service Loan Forgiveness (PSLF)
Walden University, as a participating institution certified by the U.S. Department of Education, offers the PSLF program. This program allows graduates working for a qualifying public service employer to make 120 monthly affordable payments for 10 years and then get the balance of their undergraduate or graduate school loan forgiven. Qualifying employers include federal, state, local, or tribal government agencies, tax-exempt nonprofit organizations, and other nonprofit organizations providing public services such as law enforcement, public health, and education.
If you need assistance navigating your options for student loan relief, you can call the Student Loan Relief Helpline at 1-888-906-3065. They will review your case and evaluate your options for switching repayment plans, consolidating your loans, or pursuing forgiveness benefits.
Other Options
In addition to the above options, there are other strategies to manage your student loan debt:
- Student loan consolidation: Combining multiple loans into one single monthly payment, which may make you eligible for federal repayment programs.
- Refinancing: If you have a mix of private and federal loans, refinancing can lower the overall interest rate and save you money.
- Scholarships and grants: Walden University offers scholarships, tuition reductions, and grants that do not need to be repaid.
- Research and planning: It is important to research and plan for paying off your debt, including considering your income level and using a student loan repayment calculator to determine affordable monthly payments.
Remember, it is essential to carefully review your options and seek professional advice to determine the best course of action for your specific situation.
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Frequently asked questions
Yes, there are a few ways to get your student loans from Walden University forgiven. One way is through the Public Service Loan Forgiveness (PSLF) program, which requires you to work for a qualifying public service employer and make 120 monthly payments for 10 years, after which the remainder of your loan will be forgiven. Another way is through the Borrower's Defense Program (BDAR), which is applicable if you feel that Walden University has defrauded you in any way.
To qualify for the PSLF program, you need to work for a qualifying public service employer. This includes federal, state, local, or tribal government agencies, tax-exempt nonprofit organizations, public charities, private foundations, and other nonprofit organizations that provide public services such as law enforcement, public interest law service, early childhood education, public health, and public education.
To apply for the BDAR program, you need to submit a Borrower's Defense application and link the school's legal troubles to your claim. You must stress Walden University's legal problems and emphasize that you would not have taken out the student loan had you known about the school's fraudulent activity.
