Le Cordon Bleu had made an agreement to wipe out the debt held directly by Career Education, such as unpaid tuition, which ended a five-year multistate investigation into complaints that the company used predatory and deceptive recruiting tactics.
so don’t wait for too much and take action while these options are still available.
Before we dive into the options let us give u a bit of history and why Le Cordon Bleu Close.
What are for-profit schools?
For-profit colleges are private schools where degree-seeking students pay high levels of tuition for classes. This often means taking out hundreds of thousands of dollars in high-interest loans in the process.
They differ from traditional public and private schools because typically a college or university does not profit from their programs. The cost of tuition goes towards paying professors and administrators a set rate and operating the basic programs of the school.
For-profits, on the other hand, have a CEO who profits more the more the university makes. Therefore they have more incentive to charge more and draw in more students with fewer qualifications.
Why Le Cordon Bleu Closed?
Le Cordon Bleu misled students about the cost of its programs and its graduates’ job prospects, said Tom Miller, the attorney general of Iowa, whose office helped lead the states’ investigation. In some cases, Le Cordon Bleu charged students for vocational programs that lacked the accreditation needed for them to obtain a license and work in their field
Le Cordon Bleu Lawsuit
It was a class action suit filed by multiple former students which lobbed the following accusations at the school’s leaders:
- The school had used aggressive marketing and recruitment techniques to lure students into the school.
- In order to recruit more students, the school misrepresented multiple things. First, the ability to transfer credits to other universities was over-inflated, leading students to believe they could transfer schools easily and effectively. This was not the case.
- Second, they misrepresented the curriculum and available classes. Students claimed that the school made applicants believe they had many more classes and degree paths than they did. As well as a more developed curriculum than was actually available.
The students won the lawsuit, leading the company to have to allow student loan forgiveness to many students who had taken out loans under the assumption that the school was much better than it actually was.
It cost the company almost $100 million to pay back these students’ federal and private loans.
Le Cordon Bleu How to Get Loan Forgiveness
To get your Le Cordon Bleu loans forgiven you have two options.
Le Cordon Bleu School Closure:
The eligibility requirements for Le Cordon Bleu Closed School Discharges are quite simple. Basically – you had to be attending one of the Le Cordon Bleu that shut down while it shut down, or have withdrawn from the school within 120 days of the shutdown.
Here are the details in a handy bullet-point list format:
- You must have attended one of the Le Cordon Bleu who are shutting down, and you cannot have already completed the educational program you were enrolled in at Le Cordon Bleu.
- You must have outstanding student loan debt from one of the following Federal student loan forgiveness programs: Direct Loans, FEEL Loans, or Perkins Loans.
- Your Le Cordon Bleu school must have closed while you were still enrolled – OR – your Le Cordon Bleu school must have closed within 120 days after you withdrew from the program.
As long as you have the above requirements, you’ll eligible to receive student loan discharge from Le Cordon Bleu.
Le Cordon Bleu Borrowers Defense To Repayment.
The Obama administration introduced the Borrower Defense to Repayment (BDR) rule as a way to provide debt relief to students defrauded by their school.
The legislation was prompted by the closing of Corinthian Colleges, which left approximately 100,000 students with debt and no degree. Although borrowers have been able to seek loan forgiveness from fraudulent colleges since 1995, BDR makes the application process much easier.
If your school convinced you to sign up for their expensive program because they made promises about your ability to pay back the loan (either by inflating job placement rates, salary statistics, or some other similar data), then you’ll have a pretty good shot at qualifying for a defense against repayment discharge.
Make sure you include as much detail as possible (relevant detail), in your application letter and provide specific details about how you were lied to, what you were promised, told, or not told about, to clearly explain why you believe the school violated some law.
We can help you navigate and understand your loans as well as providing you with professional assistance to file your claim professionally and guarantee the best possible outcome.