Colorado Technical University was established in 1965 and offers undergraduate, graduate, and doctoral programs. It primarily focuses on the business, technology, and management fields and offers many degree programs that are entirely online. Two campuses of the university are located in Colorado and Aurora. The university seemed very promising a few years ago. The class action lawsuit against Colorado Technical University appeared to be irrelevant. According to Military Times Magazine, they even took the top spot for degree programs for veterans in 2013, 2014, and 2016. However, at the beginning of 2018, things quickly began to change. Through the cancellation of student loans, their false representation cost the organization $500 million.
Colorado Technical University is a for-profit college operated by the Perdoceo Education Corporation (formerly known as Career Education Corporation). Its operator has been involved in multiple lawsuits due to unlawful or misleading practices against students. The Federal Trade Commission conducted a multi-year investigation into false marketing strategies or the operating organization’s pressuring sales generation techniques. As a result, the Perdoceo Education Corporation settled a few times with the FTC for millions of dollars. While they never admit wrongdoing, these settlements created excellent opportunities for the students who were victims of fake promises. In this guide, we will discuss the causes and results of two lawsuits that ended in 2019, which also concerned the Colorado Technical University class-action lawsuit.
Both of these lawsuits sought monetary damages and demanded changes in the advertising and student management practices of the Perdoceo Education Corporation. If you have not benefited from any of these lawsuits, we will also guide you to another solution, the Borrowers’ Defense to Repayment plan.
Perdoceo/Career Education Corporation
One can be confused about why the lawsuits against the Career Education Corporation matter in the Colorado Technical University class-action lawsuit. Career Education Corporation (CEC) is a Schaumburg-based for-profit college operator. Recently, at the beginning of 2020, the corporation changed its name to Perdoceo Education Corporation. This organization provides educational services through its schools, such as Colorado Technical University, American InterContinental University, and Trident University International. Its previous schools, such as Briarcliffe, Missouri, and Gibbs, are closed. The corporation’s primary source of income is the tuition fees of the students, which mainly the U.S. Department of Defense and Veterans Administration cover.
But Before…
Before we start discussing the Colorado Technical University class-action lawsuit, we have good news for you. As the name of this school was involved in disputes, mismanagement, and fraudulent activities toward students, students of this organization can benefit from some opportunities for student loan forgiveness or reduction.
Therefore, if the Colorado Technical University Lawsuit’s victims include you, you may be eligible to have your student loans forgiven. You must also meet a few other requirements in order to achieve this goal. We are here to help you if you lack knowledge and experience with the forgiveness program. We make sure that the process of canceling your loans goes smoothly, but we also give you advice about being cautious the next time you take out loans.
If the settlements previously made with the CEC did not bring any changes, students could apply for the Borrower’s Defense against Payment program. This program helps graduates reduce, if not eliminate, their loan debt obligation. The main factor that matters in the application is proving that the student was the victim of unlawful or unethical practices of the university. As there is a class action lawsuit against Colorado Technical University, it can be relatively easy to convince the Department of Education officials. If you have any questions regarding this program, you can check out our Borrower’s Defense Against Repayment page. Alternatively, you can call us to get expert help and advice.
$493 Million Worth Settlement
This Colorado Technical University class-action lawsuit brought massive benefits and changes to the Career Education Corporation. The operator agreed to remove $500 million worth of student debt after settling with 48 states and the District of Columbia. The for-profit college operator manages Colorado Technical University and American InterContinental University. It serves around 34k students. The settlement, which is about $493.7 million, benefits about 180 previous students of the colleges. The Schaumburg-based operator agreed to this settlement after it faced claims such as false advertising, misleading promises about job opportunities, and misinformation about the education’s cost. The case was based on a multi-year investigation.
Detailed Causes
It is hard to generalize the causes of almost $500 million worth of settlements under a few headings because this Colorado Technical University class-action lawsuit has a diverse base of drivers. Allegedly, the college operator employed some unlawful and unethical strategies to attract students. Its recruiters used pressuring language to make students decide faster about their enrollment. They misled the students by stating that the credits were transferable when they were not. Also, they used fake facts about employment rates after graduation.
Even some of the programs did not have the necessary accreditation, which is essential when people start looking for a job after getting a degree. Another problem was that the recruiters did not inform the students about the real cost of their education. They used tricky words and provided incomplete information, which made the program seem more affordable. All those fraudulent strategies to attract students resulted in the class action lawsuit against Colorado Technical University.
The Settlement
As a result of the lawsuit, the Career Education Corporation, or its new name, Perdoceo, agreed to $493 million worth of student loan cancellations. Besides, they agreed that they would not misrepresent the schools through false accreditation, employment rates, credit transfer, and financial aid promises. Also, the programs that did not have the necessary licensure for employment should be closed.
The court ordered that as students made decisions without being aware of the real cost, the school provide full disclosure about the costs. This single-page document should include the total cost, average debt, percentage of people completing the program, average salary of the graduates after graduation, etc. Additionally, students were required to fill out the disclosure online, which provided information about the debt burden and expected income. Sure, the Perdoceo Education Corporation denied all the allegations, although they agreed to settle.
The attorney general, who was also a co-lead negotiator, believed that the settlement would set an example for other colleges in the industry and make it fair for the students.
Eligibility for Colorado Technical University Loan Forgiveness
Students who studied in one of the closed schools of the Perdoceo Education Corporation on or before January 1, 2019, had the right to get loan forgiveness. For graduate students, this time range included the period before or on December 31, 2013. Some of the Perdoceo Education Corporation’s schools, such as Le Cordon Bleu, Missouri College, or Sanford-Brown, were closed.
While this Colorado Technical University lawsuit settlement is a big step toward creating a transparent environment in the education industry, it does not benefit many students. The settlement only covers the loans that students owe directly to the Perdoceo Education Corporation. They took other federal or private loans for educational purposes after they were influenced by the misleading actions of the college, which were not canceled as a result of the settlement. Also, the other two states—New York and California—did not participate in this settlement. They have their agreements. Therefore, students in these states do not benefit from the $493 million in loan forgiveness.
How to Avoid Such Cases?
Sure, receiving a loan cancellation is an excellent idea. However, it is better to avoid such cases beforehand, so that you do not wait for lawsuits and student loan solutions. When entering the university, do not fully trust the claims of the recruiters. Potential students must do in-depth research and get some feedback about the quality of the programs from graduates. They can ask previous students whether they were able to find a job quickly and how the program prepared them for future employment opportunities.
Another issue is being unaware of debt management and finances. Prospective students should use loan calculators and read all the material they sign beforehand. The terms of student loans can be quite harsh, so they need to be well aware of what those terms mean. Getting external help to calculate the burden of the debt is also the right solution. If there is no guarantee that a student can meet the loan debt obligation, it is better to give up and find an alternative program with lower tuition fees. Lastly, read all the material you get and ask many questions without letting the pressuring sales tactics make a decision for you.
$30 Million Worth Settlement
The lawsuits against the Career Education Corporation, and subsequently a class action lawsuit against Colorado Technical University, did not end at the beginning of 2019 when they settled for half a billion.
In the midst of 2019, another Career Education Corporation reached another settlement with the Federal Trade Commission for $30 million. The main reason behind this Colorado Technical University class-action lawsuit was the lead-generating processes of the operator. The CEC utilized this process to generate sales leads through deceptive practices. The lead generators misinformed the clients that the schools were affiliates of the U.S. military and made other unlawful claims.
Colorado Technical University is one of the CEC’s subsidiaries, and it was involved in the allegations of the FTC, along with other entities like American InterContinental, Marlin Acquisition Corporation, etc. The FTC claimed that the CEC utilized the lead generation process for advertising its schools and attracted clients with false promises or facts.
Detailed Causes
This Colorado Technical University class-action lawsuit had many causes behind it. In addition to claiming that the U.S. military recommends the schools, the CEC collected potential clients’ information by stating that they would get opportunities like job offers or other benefits. Lead generators acted like job finding services or military recruiters to get the personal details. They noted that they keep all client information private and do not share it with other parties. Then, they contacted these people for post-secondary education.
The lead generators of the CEC called numbers that were on the list of the National Do Not Call Registry. The majority of those people had no desire to attend college or any CEC school.Some others showed interest because they were misled by false claims, such as being a U.S. military affiliate or getting fantastic employment opportunities after graduation. As lead generators had specific enrollment quotas for the month, they pressed the potential clients and disturbed them by calling several times a day. All those unlawful and unethical actions led to a class-action lawsuit against Colorado Technical University.
The Settlement
As a result of those causes, the Colorado Technical University class-action lawsuit ended with a $30 million settlement. Besides this payment, the court ordered that the CEC should check all the promotional materials its lead generators use. If there are complaints against these recruiters, the operator should deal with them on a case-by-case basis. In general, the CEC should not utilize any lead generation techniques that deceive people and provide false benefit promises. In return, the CEC mentioned that they do not admit any wrongdoing. The only reason they agreed to this Colorado Technical University class-action lawsuit settlement was because of the high cost of legal services.It has already been four years since the Federal Trade Commission investigation into the case began, and they decided to settle to avoid any further legal costs.
How to Avoid Such Scams?
This Colorado Technical University class-action lawsuit is not the first one and would not be the last. Every year, news breaks that the schools face charges, or settle with another party for mismanagement of fraudulent actions. It is better not to wait for a loan debt problem to happen before demanding justice. The Federal Trade Commission advises a few ways to avoid the cause of those problems in the first place.
People should not fill out any forms on websites without getting much information. They should first find out who is requesting this information and why. If there are not many details about the purpose of the form, it is advisable to go online and search for the site operator. By adding keywords like “complaints” or “review,” it can be possible to find other people’s comments who have provided personal information to such platforms.
If someone calls you, and you understand that they are imposing a different person, you should immediately report it to the Federal Trade Commission. They have a complaint page on their official websites. In no case, one should be pressured to share Social Security or bank card numbers on the phone or other medium. In this post, we have discussed two major Colorado Technical University lawsuits. However, there is no guarantee that the settlement will ensure there is no wrongdoing in the future. Hence, be aware of the fraudulent activities of schools and operators to stay away from them.
I Have A CTU Federal Student Loan. What Should I Do?
It can be disappointing, but a settlement for the Colorado Technical University lawsuit usually benefits only a few students. Sure, there are hundreds of students who receive loan forgiveness. However, compared to the total number of debtors, there are not many students with benefits. The main reason for this difference is that the largest settlement, which was $493.7 million, was only for the loans owed to the Perdoceo Education Corporation. In general, students take loans from federal and private resources, which were not eligible for the cancellation.
Federal debtors aren’t the beneficiaries of the CTU lawsuit settlement. Don’t give up hope, though. A fantastic option, The Borrowers’ Defense to a Repayment Program, may still be available to you. If you experienced any wrongdoing by the school, this program enables you to completely or partially eliminate your debt. Additionally, you can use repayment plans or debt consolidation programs to efficiently pay off the debt. Although these options won’t eliminate your debt, they will assist you in successfully fulfilling your debt obligations.
If you have a federal student loan for Colorado Technical University, there is an excellent opportunity. The Borrower’s Defense to Payment Plan aims to aid students who were victims of mismanaged universities. It provides a full or partial discharge of federal loans. Borrowers with Federal Family Education or Perkins loans may be required to get loan consolidation before applying for discharge. If debtors can prove that their universities misled them, then they can get rid of the debt.
They should also keep in mind that the Borrower’s Defense to Payment program only benefits when universities engage in unlawful and unethical practices, such as false advertising, misinformation, etc. Personal matters with the university are not eligible for the program as it aims to provide a transparent and honest environment in education.
What Happens If You Owe Money to Other Schools?
Don’t give up just yet if you have student loan debt from other institutions; I have a ton of other guides that can help you pay it off or at least lower the amount you owe. The first and most crucial step is to decide whether you need relief from private student loans or from federal student loans because the options are very different and much better for those who have federal student loans.
Eligibility Criteria
Understanding the eligibility criteria for this program is relatively easy. Convincing the officials that the university misled, misinformed, and deceived the student is the most significant factor in determining whether the debtor deserves cancellation. If the application is approved, the borrowers can get a full or partial discharge and a refund for their previous payments.
When filling out the application, they need to ensure that the form is convincing. All the related documents, such as promotional materials and emails with university officials, can be added to the school’s application to prove the school’s misconduct. It is not difficult to persuade officials of the mismanagement following the Colorado Technical University class-action lawsuit.
Get Our Help on Your Side
The loan terms are complicated. The lawsuits, cases, and settlements are even harder to understand. In this guide, we helped readers understand the recent Colorado Technical University class-action lawsuit and its results. We recognize that the benefits that settlement brings do not apply to every student. The majority of them are ineligible for the $493.7 million cancellation. However, we can help you get rid of your debt or at least reduce it if you studied at Colorado Technical University.
Where Can I Find More Details?
Contacting us will allow you to learn more about your options regardless of whether you qualify for Colorado Technical University loan forgiveness. Yes, reading our blogs can help you conduct your own research, but it will likely take a while. Additionally, it can be difficult to understand financial jargon. Thus, a shortcut is available. By writing to us right away, you can get a professional opinion on your debt problems.
