Sunday, September 13, 2020

STUDENT SUES OVER COLLEGE DEBT FOR USELESS 4-YEAR DEGREE

by Bob Walsh

Jorge Villalba got a four year degree in "digital entertainment and game design" at the now defunct ITT Technical Institute.  He ended up with $50 k in federal students loans thru Navient, and another $43 k in private loans, many of them cosigned by his mother.  Every time he applied for a job he was given the thanks but not thanks response.

Villalba has filed for a "borrower defense to repayment" seeking to have the loans forgiven.  The feds cancelled his government loan at the end of 2017  but Navient has refused to cancel his private loan obligations.  He and his mom are now suing, alleging that the udnerlying fraud at ITT makes the loans legally unenforceable.

Villalba has alleged that Navient has contacted other of his family members who have no connection whatsoever to the situation in an attempt to collect on the loan.  

There is some precedent on each side of this issue.  The federal suit Villalba and his mother are pursuing will hopefully iron out the situation in their favor and declare that the loan was fraudulent and legally uncollectable.

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