InfiLaw’s three for-profit law schools struggled with record low bar passage rates and low employment figures, before the American Bar Association and Federal government stepped in and effectively led to the closure of the schools.
Arizona Summit Law School, Charlotte School of Law and Florida Coastal School of Law, all owned by InfiLaw, were forced to close between 2017 and 2020.
Soon, many of those former students may get relief from their heavy debt loads.
A Federal judge in San Francisco recently granted preliminary approval of a proposed joint settlement in a lawsuit in which former students sued to the Department of Education to discharge their federal student loans because of misconduct by their schools. The settlement will cancel about $6 billion in federal student loans by former students who claim they were defrauded by their schools.
In addition to the three InfiLaw schools, graduates of Western State University College of Law, which is still open, are also eligible.
The Education Department agreed to “presumptive relief” to former students of these schools who filed their borrower defense application before the settlement was initially signed in June.
The presumption was based on “strong indicia regarding substantial misconduct by listed schools … and the high rate of class members with applications,” said a joint motion that lawyers in the class action sent to U.S. District Judge William Alsup for his approval.
For those who want to file borrower defense applications now, the settlement pledges that their claims will be reviewed and decided within a 36-month time frame. Students are working to file their requests quickly since this only applies to requests that are made before the settlement is officially approved by Judge Alsup.
