Closed Universities

Kaplan University Lawsuit and Student Loan Forgiveness

In recent years, the issue of student loan forgiveness has gained significant attention, particularly about for-profit educational institutions. Kaplan University, a well-known online college, has been the subject of controversy and lawsuits regarding its practices and their impact on students’ financial well-being. This article aims to explore the Kaplan University lawsuit and its implications for student loan forgiveness.

Overview of Kaplan University

Kaplan University, previously known as the American Institute of Commerce (AIC), is an online for-profit college that offers various degree programs to students seeking flexible learning options. Established in 1937, Kaplan University grew in popularity due to its accessibility and diverse range of courses.

The Lawsuit against Kaplan University

Over the years, Kaplan University faced allegations of engaging in deceptive practices, misrepresenting job placement rates, and misleading prospective students about the quality of education and potential career outcomes. These accusations led to a series of lawsuits filed against the institution.

Allegations and Legal Proceedings

The lawsuits against Kaplan University claimed that the institution misled students regarding the cost of education, employability prospects after graduation, and the transferability of credits earned. Additionally, it was alleged that the university had aggressive recruitment practices, targeting vulnerable individuals seeking to improve their career prospects.

Legal proceedings revealed testimonies from former students who claimed they were left burdened with substantial student loan debt and unable to secure jobs in their chosen fields. The allegations painted a concerning picture of how the university’s practices impacted students’ lives.

Student Loan Forgiveness Programs

In response to the lawsuits against Kaplan University and similar for-profit colleges, the U.S. government introduced student loan forgiveness programs to alleviate the financial burden on affected students. These programs aimed to provide relief by forgiving a portion or the entirety of the loans obtained by students attending institutions with fraudulent or misleading practices.

Students who could demonstrate that they were victims of predatory practices or had been misled by their educational institutions may be eligible for loan forgiveness. However, seeking forgiveness can be complex, requiring careful documentation and adherence to specific criteria.

Impact on Students

The impact of Kaplan University’s practices on students has been profound. Many former students face significant financial hardships, struggling to repay their student loans while dealing with limited job prospects. The debt burden hinders their ability to pursue further education, buy homes, or start families.

The emotional toll is also significant, as students feel betrayed by an institution they trusted with their educational and professional aspirations. The impact extends beyond financial constraints and often affects their self-confidence and overall well-being.

Current Status and Future Implications

Following the lawsuits, Kaplan University underwent significant changes. In 2017, it became Purdue University Global after Purdue University acquired it. These changes aimed to distance the institution from its controversial past and provide a fresh start for students.

The lawsuits against Kaplan University highlighted the need for stricter regulations in the for-profit education sector. It prompted a closer examination of recruitment practices, transparency in disclosures, and accountability for educational outcomes. The case is a cautionary tale for students considering enrolling in online or for-profit institutions.

The Importance of Student Loan Education

The Kaplan University lawsuit emphasizes the importance of student loan education. Prospective students should be well-informed about the financial implications of their educational choices and understand the risks associated with for-profit colleges. Individuals must research institutions thoroughly, consider alternative options, and clearly understand the potential outcomes before committing to a student loan.

Kaplan University Lawsuit

The issue with Kaplan is not new. There have been complaints and concerns about the institution for quite some time. However, the problem only recently came to a head in 2017 when a class action lawsuit was filed against Kaplan at their parent company, The Graham Holdings Company. If you were going to school while this happened, that may have been a massive part of your decision-making on whether or not you should continue attending school there or transfer somewhere else. However, you would have been hard-pressed to find anybody willing to speak badly of Kaplan before their practices started being exposed – it’s almost as though they had everyone scared into silence.

That’s precisely what happened here. In fact, some of the former employees of Kaplan accused it of having a practice of hiring people who would foreclose on homes to work in the admissions department. It got so bad that the CEO ended up departing, and they were forced to pay out $1.3 million in bonuses that had been given to their staff under false pretenses. However, this was just the start of what has become an onslaught against the institution – most notably for its for-profit college practices, which resulted in students enrolling there later feeling duped after finding out that its degrees aren’t worth much.

kaplan university student loan refund

At one point, Kaplan University was receiving more than $1 billion per year from federal student aid programs alone. As if this wasn’t enough, though, numerous former employees of Kaplan were required to sign nondisclosure agreements before they left the company, which prevented them from speaking about their time there or even acknowledging that they had ever worked for it. On top of this, many students who attended Kaplan University while it was still open claim that these illegal practices ultimately caused the institution to close down in 2017.

However, the main point here is not to simply badmouth Kaplan University – instead, you should know that if you decide to attend the school during its time of operation, then you may be able to save yourself a lot of money by using this information to get your student loans discharged. The easiest step in doing so would require hiring an attorney who can help guide you through applying for loan forgiveness.

However, not everyone who attended Kaplan University is eligible for these programs, which is why you need to speak with a specific attorney to find out if you can qualify. This program does take into account your situation and will only help the people who were defrauded by Kaplan and did not engage in any of its illegal behaviors before filing their lawsuit. For example, some people may be agitated because they got accused of engaging in fraudulent behavior when this was actually part of Kaplan University and affected them too! If this sounds like you (or even if it doesn’t), then you should know that there are other options available when it comes to getting rid of your student debt after earning a degree from Kaplan University.

Kaplan student loan forgiveness

The first option that every student should look into is the Closed School Loan Discharge program. Students who are eligible for this can have their federal loans discharged once they’ve applied. All you need to do would be used for loan forgiveness under this program if you attended Kaplan University, which will allow you to have your federal loans forgiven by the Department of Education.

Kaplan university scams

Another option that everyone should look into is the Borrower’s Defense To Repayment program, otherwise known as BDAR. You can apply for this by using a discharge application process to have your loans forgiven. As far as requirements are concerned, you must’ve been enrolled in an accredited school at the time of its closing, as well as file a complaint with the Department of Education about Kaplan University within 60 days of either being notified that it would be closed or finishing your courses there.

Now, you may have heard bad news about Kaplan, but I’m sure that not everyone has had a terrible experience at this institution. If that’s the case, you may be able to get your student loans forgiven through this new repaying option which allows you to have your loans discharged.

Kaplan University Lawsuit and Student Loan Forgiveness News

Kaplan University, a for-profit college, has been involved in various legal issues and misconduct allegations. Former students of Kaplan Career Institute filed a class-action lawsuit against the U.S. Department of Education, claiming that the department has been slow in assessing their claims for debt relief.

The lawsuit revolves around an application submitted by the Massachusetts Attorney General’s Office on behalf of approximately 100 former students of Kaplan Career Institute. These students accused the now-defunct school of inflating job-placement rates and using aggressive sales tactics to enrol students in its medical billing and assistant medical programs between 2009 and 2012.

The Education Department has received over 400,000 borrower defence claims between 2014 and the end of 2021, and Education Secretary Miguel Cardona has approved $2 billion in discharges for 105,000 borrowers so far. However, the lawsuit alleges that the agency could do more and process claims faster. Consumer advocates suggest the department clear the backlog by granting group relief instead of reviewing individual applications.

Regarding student loan forgiveness, the Borrower Defense to Repayment program allows borrowers to apply for federal student loan forgiveness if their school misled them about key aspects such as admissions selectivity, job prospects, or credit transferability. However, this program has faced challenges and changes since its enactment in 2016, with many applications being denied or unprocessed.

In a separate development, the Biden administration announced the automatic cancellation of $6 billion in federal student loans for over half a million former students of Corinthian Colleges, which included Everest College, Heald College, and Wyotech. Lawsuits and investigations against these schools alleged misconduct, leading to the loan cancellation.

Regarding Kaplan’s settlement with the United States Department of Justice, Kaplan Higher Education reached a civil settlement and agreed to pay approximately $1.3 million under allegations that the company employed unqualified instructors at its Texas campuses. The settlement includes tuition refunds for 289 students, resulting in a decrease in their student loan debt.


The Kaplan University lawsuit has highlighted the challenges faced by students who attended for-profit colleges and were misled by deceptive practices. The impact on students’ financial well-being and the subsequent introduction of student loan forgiveness programs reflect the need for accountability within the education sector. Students must exercise caution, conduct thorough research, and seek guidance to make informed decisions about their education and student loans.


Q: What is Kaplan University? A: Kaplan University was a school that offered various degrees, including bachelor’s degrees and law degrees.

Q: Are there any issues with Kaplan University? A: There have been reports of fraudulent practices at Kaplan University, which resulted in financial losses for students and employees. Many individuals have filed lawsuits against the institution.

Q: When did the issues with Kaplan University come to light? A: The problems with Kaplan University were highlighted in 2017 when a class action lawsuit was filed against the institution and its parent company, The Graham Holdings Company.

Q: What were some of the fraudulent practices reported at Kaplan University? A: Former employees accused Kaplan of hiring individuals with backgrounds in foreclosing on homes to work in the admissions department. The CEO of Kaplan resigned, and the institution had to pay out $1.3 million in bonuses given under pretences.

Q: Did Kaplan University receive federal student aid? A: Kaplan University received over $1 billion yearly from federal student aid programs.

Q: Did former employees have restrictions on speaking about their time at Kaplan? A: Many former employees were required to sign nondisclosure agreements that prevented them from discussing their experiences at Kaplan.

Q: Can attending Kaplan University help with student loan discharge? A: If you attended Kaplan University and believe you were defrauded, you may be able to get your student loans discharged. It is advisable to consult with an attorney who can guide you through the process.

Q: Are all students eligible for loan forgiveness programs? A: Not all Kaplan University students are eligible for loan forgiveness programs. Speaking with a specific attorney is recommended to determine if you qualify based on your circumstances.

Q: What are some options for getting rid of student debt after attending Kaplan University? A: One option is the Closed School Loan Discharge program, where eligible students can have their federal loans discharged. Another option is the Borrower’s Defense To Repayment program, which requires filing a complaint with the Department of Education within 60 days of the school’s closing.

Q: Has Kaplan University been involved in other legal issues? A: Yes, Kaplan University has faced various legal issues and allegations of misconduct. There have been lawsuits related to inflated job-placement rates and aggressive sales tactics.

Q: What is the current status of borrower defence claims against Kaplan University? A: The Massachusetts Attorney General’s Office applied on behalf of former students, accusing Kaplan Career Institute of misconduct. The lawsuit claims that the U.S. Department of Education needs to be faster in assessing its claims for debt relief.

Q: Is there a student loan forgiveness program for borrowers misled by their schools? A: Yes, the Borrower Defense to Repayment program allows borrowers to apply for federal student loan forgiveness if their school misled them about important aspects such as admissions, job prospects, or credit transferability.

Q: Has there been recent news about student loan forgiveness for former Corinthian Colleges students? A: Yes, the Biden administration announced the automatic cancellation of $6 billion in federal student loans for over half a million former Corinthian Colleges students due to alleged misconduct by the schools.

Q: Has Kaplan University settled any legal cases? A: Kaplan Higher Education reached a civil settlement and agreed to pay approximately $1.3 million under allegations of employing unqualified instructors at its Texas campuses. The settlement included tuition refunds for affected students, resulting in a decrease in their student loan debt.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button

Adblock Detected

Hello dear visitor, We've noticed that you are using an AdBlocker which may interfere with the content display and overall experience on our site. Our website relies on ad revenue to deliver free content and support its operations. We kindly request you to consider disabling your AdBlocker while browsing our site. Your support will help us to continue providing free content and a better user experience. Thank you for your understanding and cooperation.