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The college I graduated from lost its accreditation and has been shut down. Can I sue for my student loans?

El Cajon, CA |

In 2009 I attended UEI San Diego and graduated from it's computer systems tech course with a 4.0 GPA and received my diploma. The school promised to help me find an internship to complete my course and find a job in a related field. But when it came time for me to find an internship no one would answer the phone, so I found my own. After completing that on my own and it was time to find a job, again no answer to multiple voice mails and emails. Since then the school has lost its accreditation and has been shut down. The education I got was worthless, no employers in that field even took me seriously at interviews, and now I'm working in an unrelated field, and I owe a lot of money in student loans. I don't think I should be held responsible for the student loans I was left with.

Attorney Answers 4


  1. No. That is a risk anyone (and any of us responding) took when we chose a school and degree program. Diplomas come with no guarantee of a job.


  2. Everyone needs to do their due diligence when selecting any provider of services. Unfortunately, you, along with many others, assumed that risk when you contracted for the services.


  3. You are in a tough spot because the lender who gave you the money likely had nothing to do with the school closing. You could investigate whether or not the lender knew of the problems with the school, but this could be very challenging. Yes you may be able to sue the school, but they are probably in bankruptcy themselves. If the school is still operating, you may consider a lawsuit. Of course this can be expensive. If no legal recourse seems to make sense for you, I would stop talking about the school losing it's accreditation to others and use the credentials you received from them as valid. If they were properly credentialed when they gave you your degree, then your degree is valid. Keep in communication with the student loan people and never just ignore them. There are deferments, forbearances etc. available.

    The answers offered by this attorney are for general information purposes only and you should not take action based on these answers without first speaking with an attorney who can go over all the facts of your case in person. Every case is different; a change in facts results in a different answer.


  4. There is something called a "Closed School Discharge" that you need to investigate. Here is a starting point: http://studentaid.ed.gov/repay-loans/forgiveness-cancellation#closed-school

    The qualifications for this relief are narrow, but dig in to the subject matter for all the info.

    Then, if necessary, contact the student loan ombudsman program:
    https://studentaid.ed.gov/repay-loans/disputes/prepare/contact-ombudsman

    My responses to questions on Avvo are never intended as legal advice and must not be relied upon as legal advice. I give legal advice only in the course of an attorney-client relationship. Exchange of information through Avvo's Questions forum does not establish an attorney-client relationship with me. That relationship is established only by individual consultation and execution of a written agreement for legal services.