Update on Our Court Fights

Since for-profit college borrowers began fighting for debt relief in 2014, they have battled both democrats, republicans as well as loan servicers and collectors. Recently, some former Corinthian students finally started getting debt relief. While this is a good start, it is not enough. In fact, some borrowers are only receiving partial relief of their fraudulent loans. That is one reason the fight has moved to the courts. This month, there are two important cases to watch.

Case #1: Dieffenbacher v. DeVos

On April 30, 2018, The Court will hear arguments from Debt Collective member, Sarah Diffenbacher. Her lawyers will argue that the Department has illegally sought to collect her loans by wage garnishment and that Sarah’s loans are completely unenforceable because of the misconduct of her school. The Court will also hear arguments from the Department’s lawyers about why the case should be dismissed.

Members of the public are welcome to attend the hearing to support Sarah and to demonstrate to the judge that we expect results. Here are the details:

Dieffenbacher v. DeVos
Hearing date / time: Monday April 30, 2018 at 2pm
Courtroom 8A
United States District Court for the Central District of California
350 West 1st Street
Los Angeles, CA 90012

Case #2: Class-Action

On April 30, 2018, the Court will also hear argument on Plaintiffs’ Motion for a Preliminary Injunction in a class-action on behalf of certain Corinthian borrowers (though the result of this case will set an important precedent for ALL former for-profit students). Through this motion, Plaintiffs seek an order stopping the Department of Education from partially denying these class members’ borrower defense applications and an order requiring the Department to grant them a full loan discharge as it was doing under its streamlined process before January 20, 2017. Although it is unlikely that we will get a ruling that day, we will will get to hear how the judge is thinking about the issue.

The Debt Collective submitted an amicus brief in this case detailing harms former students experienced and asking the court to provide full relief to all. You can read the brief here.

In the Bay Area? You can attend this hearing:

Calvillo Manriquez v. DeVos
Hearing Date/Time: Monday, April 30, 2018 at 9:30 AM
Courtroom A, 15th Floor.
US District Court
450 Golden Gate Ave
San Francisco, CA 94102

NOTE: You will need a photo ID to attend these hearings. Court Cell Phone Policy: Cell phones allowed, but use of cell phones (calling, texting or game playing), cameras, or other electronic devices that have video, sound, or photographic capabilities are prohibited in the courtrooms.