Student Veterans Get Break on Debt From For-Profit Universities

Legal Help for Veterans is a law firm helping veterans get the benefits they deserve.

Northville, MI (Law Firm Newswire) November 19, 2018 – Legal Help for Veterans is pleased to announce student veterans subjected to improper loan debt while enrolled at for-profit schools are eligible for debt relief after a recent federal court ruling advanced stalled rules offering the debt protection. They qualify for federal student loan forgiveness after being issued loans they did not request.

“The GI Bill is a great reward for serving our country, but some schools have unnecessarily burdened many student veterans with debt they did not want,” veterans affairs attorney James Fausone said. “This ruling helps clear the way to financial independence and greater career opportunities for our military veterans.”

On October 16 U.S. District Court Judge Randolph D. Moss in the District of Columbia dismissed arguments by a coalition of for-profit universities that sought to stay federal regulations giving debt relief to post-9/11 military veterans. Co-plaintiff Jonathan Ngowaki, while enrolled at DeVry University, said university officials told him he received three separate $5,000 grants, which do not need to be repaid.

Instead, the university set Ngowaki up with three federal student loans totaling $15,000. The university earlier required him to fill out a master promissory note, which it used to qualify Ngowaki for the loans. Ngowaki earlier told the university’s financial aid officers he does not need financial aid.

When Ngowaki received the first $5,000 check, he says financial aid officers told him it was a grant. About halfway through his undergraduate program, Ngowaki says he suddenly learned he was $15,000 in debt. He joined other plaintiffs in filing the lawsuit to retroactively enact the stalled federal protections for students saddled with federal student loan debt.

Michigan has two for-profit colleges. DeVry University operates a campus in Southfield, and Phoenix University has campuses in Troy and Walker. Each university offers online courses. Student veterans living anywhere in Michigan could enroll in the online schools.

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Northville, MI 48168
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