When a school closes, some student borrowers become eligible to have their student loans discharged. The Department assesses school liabilities equal to the loan funds discharged and may assess liabilities against schools as an enforcement mechanism.

The status of Accrediting Council for Independent Colleges and Schools (“ACICS”) as a recognized accreditor is familiar to the Department as it has been the subject of numerous Secretarial orders, FOIA requests, and federal lawsuits.

Student Defense has aggressively advocated for student borrowers who find themselves facing Department opposition to their student debt bankruptcy proceedings.