Although the recent news hits those who are not within it, Argosy University class action lawsuit still deserves a thorough study. In doing this, the Argosy University lawsuit can have a very positive impact on student-lender debtors. The lawsuit was filed on behalf of the students and their parents against the Argosy University, alleging that the university deliberately set up policies to limit the amount of student loans available for each of its students. The policy that was used, according to the lawsuit, is also used by other for-profit universities and colleges. Thus, if you are also a student borrower who is not happy with the current policies followed by your college or university, then you should learn about the Argosy University class action lawsuit.
There is no doubt that this class action suit has been filed in a court of law in the State of Oregon. However, you should know that the case has wider implications not only for Argosy University students but also for all other students who were students in that university. As a matter of fact, it is being hailed as a landmark class-action lawsuit. Argosy University, according to the plaintiffs, is committing unfair practices against its student borrowers, denying them proper education and discouraging them from seeking alternative career paths. Moreover, the lawsuit claims that these practices are based on “unfair and inadequate” policies and procedures implemented by the Argosy University.
If you are among the many Argosy University students or former students, who have filed the Argosy University class action lawsuit, you will be happy to know that you have some good opportunities. In particular, you can obtain reinstatement of your student loan under the new FAFSA guidelines that the government has mandated. You can also learn more about the rules governing the for-profit universities on how to settle your debt in full. On top of that, you can also look forward to obtaining a fair release of your student debt as long as you can prove that you have paid at least part of your loans. The lawsuit claims that Argosy University and its owner Peter Corinth are just plain illegal, since the law firm has violated the student loan debt statute by not providing any proof that the students are indeed students.
The Argosy University class action lawsuit further claims that the defendant – Mr. Corinth – is in violation of the student loan discharge law since the school does not provide any proof that the students are actually students. This violates the law, which says that such a college can only withhold a student loan if it can prove that the borrower was a non-credible borrower. According to the Argosy University, this has caused the university to suffer losses in terms of its revenues. However, it will go on to add that the defendant simply refuses to acknowledge their wrongdoing. This may mean that the court will award damages to the class of Argosy University debtors. In addition to this, the federal investigation into Corinth is expected to last until the end of the current case.
Furthermore, the Argosy University claims that Mr. Corinth had used his for-profit institution as a vehicle to evade paying his debts. Specifically, it adds that the defendant failed to pay the required taxes on the school’s income and therefore, he cannot be awarded the tax benefits. Furthermore, it is stated that Mr. Corinth used a “debt negotiation process” with the IRS, thereby avoiding repayment. The class action lawsuit also adds that the defendant failed to make good on a promissory note, which led to the default judgment.
For its part, Corinth has filed its own lawsuit against the United States Department of Education, claiming that the U.S. government was not properly authorized to conduct an investigation into argosy university’s activities. The Argosy University states that the suit was brought in reliance on the rights protected under the Fifth Amendment. Specifically, it says that the lawsuit was brought on the basis that the U.S. Department of Education exceeded its authority in enforcing the student loan forgiveness policy. It is also claimed that the suit should be dismissed as the case does not have any legal merits. Last but not least, the Argosy University states that no damages will be awarded as the plaintiff failed to show that it suffered any injury or loss as a result of the defendant’s actions.