I almost can’t believe it – I filed a borrower’s defense claim back on 6/23/2022 (MOHELA, CTU) – Yesterday on 03/30/2026

It took me a minute to process, as this date was somehow involved with a cutoff.

When I filed my claim, it was almost random. Something just told me "You have to do something about these student loans".

I am somebody who unfortunately got scammed by CTU.

Fresh out of federal prison, I decided to finish up my BS-IT degree. I had a much better school (several of them) lined up. In searching for a school, I stumbled across CTU and that was my first mistake. Once they had my information, they were relentless and predatory.

Their sales bro / MLM-style and predatory tactics had them blowing my phone and email up CONSTANTLY. The worst part ended up being that everything they said was lies. The credits I already had, they convinced me wouldn't count, after initially saying they would. The credits I was getting there, also were not going to always help me everywhere else. Aside from the fact that I was already employed in the industry and was mainly chasing a worthless piece of paper (you know, the reality of degrees aside), the entire process was manipulative from the very outset.

They talked me out of going to school that were closer, cheaper, better education options. I had enough sense to know that maybe they were a scam, but I was foolish and thought the "scam" was that they were a pay-to-play school for credits or degrees (not that I could afford one, I just assumed it wouldn't impact me or apply to me).

I wasted several semesters and was discouraged by Intellipath and the general courses. It really felt like I was better off spending my time doing literally anything else. Meanwhile, I was starting to pile on debt. From the federal loans, they'd take the lion's share and I'd be left with a small little bit of change that would hardly cover expenses or compensate for the time I was missing from actual employment to participate in their charades: and for what?

During the process, I tried to back off, just take a break… I even tried to drop out. Suddenly my phone would be blowing up, a new person every few weeks – flooding my inbox, leaving message after message on my phone. They'd do anything to get me to enroll again, and it was like having a stalker. A scorned romantic interest.

One day, I broke free from the spell. I started to research further and learned that I'd essentially been scammed. Worse yet, the school was known for such scams. I decided: I need a borrower's defense claim. I didn't really know what it was or how it worked, but I decided to fill out the documents.

So, June 23, 2022, I put in my claim.

Never heard anything back. It just languished forever, collecting dust.

I read that if they took 3 years or more, I'd "win" by default. My mind was telling me: don't pay anything. Don't send them a single penny.

And… I didn't. Not one red cent. Why would I pay for what ended up being nothing? Worst deal ever.

As time passed, I started to wonder: what happened to my application? Every so often, I'd go check, but no progress.

Despite this and being in forebearance, multiple times, MOHELA hit my credit saying I was in default. I certainly never paid them, but they were even hitting my credit during Covid! When everybody had paused payments, they took it upon themselves to wreck my credit. Even when I was in forebearance for my Borrower's Defense claim, they did the same thing. I seen my Credit Karma drop through the floor, and filed everything I could trying to dispute those defaults.

My finances looked horrible. While I barely had a couple hundred of dollars credit card debt, and no loans, it looked like I owed $50k or so… you know, for the fat nothing I got. I probably got $7k of that or something over the whole time I went there. I don't know the exact amount and it may have been less than that (maybe a bit more, don't shoot me). For just a few semesters. Can't imagine what actually getting a real degree would cost, at those exorbitant rates! It was highway robbery – and it wasn't like I was getting all that money and then able to buy things I needed. All of the money was going straight to CTU so they could pack me in a "class" online and provide thirty five cents worth of course work on a website to me. The time and energy I wasted, I'll never get back. I'd vowed to never pay them anything.

Then, out of nowhere, while silently stressing this all for years in the back of my mind, BOOM! I got an email saying that the government was too incompetent. Too slow. They had to give me 100% refund because of their shenanigans.

For anybody wondering:

June 23, 2022 – MOHELA, CTU.

Approved yesteday finally 3/31/2026

If anybody else also went to a scam university, I hope you also file a similar claim and get relief!

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Here is what my message said:

You are receiving this letter pursuant to Paragraph IV.D.2. of the Settlement Agreement reached in the civil action: Sweet v. McMahon, No. 3:19-cv-03674-WHA (N.D. Cal.) ("Agreement"). You submitted a borrower defense to repayment discharge application after June 22, 2022, and on or before Nov. 15, 2022, for the loans associated with your enrollment at Colorado Technical University ("Relevant Federal Student Loans"). The U.S. Department of Education (ED) is providing you with this notice because, despite its best efforts, ED could not adjudicate your application on or before Jan. 28, 2026. However, the specific timeframe within which ED must process your application is the subject of ongoing litigation before the United States Court of Appeals for the Ninth Circuit.

Unless otherwise authorized by an appropriate court, ED will take or will ensure that the following actions are taken on your behalf within one year:

• the discharge of your relevant federal student loan(s);
• a refund for any payments made to ED on your relevant federal student loans, including relevant federal student loan debt that you previously paid off; and
• the deletion of the credit report tradeline associated with the discharged loan(s).

The discharge of your loan(s) does not necessarily indicate that ED has found the above-mentioned institution engaged in misconduct. Rather, your discharge results from ED being unable to adjudicate your claim on the merits by the deadline established in the Agreement.

This communication addresses only your relevant federal student loan(s). Nothing in this notice relates to private loans. Discharging your relevant federal student loan(s) means that you will no longer owe the debt. You also may receive a refund for prior payments made to ED on your discharged relevant federal student loan(s) related to Colorado Technical University. Your loan servicer will let you know if you are eligible for a payment refund, which would be mailed to you. Please check your online account with your loan servicer to ensure your address is correct so you can receive any refund.

Other than confirming your address, you do not have to take any further action to receive any discharge. Your servicer will send you more details about any discharge, including which loans have been forgiven. Your relevant federal student loan debt will remain in forbearance and collections will be stopped while any discharge is being effectuated. Your credit report will also be updated to reflect any discharge when it is complete.

What loans are eligible for a refund?

Eligible

• Direct Loans
• Federal Family Education Loans (FFEL) Program loans held by ED

Not Eligible

• Perkins Loans
• FFEL Program loans held by a private or commercial lender (such as Navient)
• Private loans (loans issued by lenders such as SoFi or Sallie Mae)

What loans are not eligible for a refund?

Under the terms of the settlement in Sweet v. McMahon, only certain types of federal student loans may receive refunds. FFEL Program loans were made by banks and then insured by ED. The payments made on FFEL Program loans go to that bank, not to ED. ED cannot refund loan payments that it did not receive. The FFEL Program ended on July 1, 2010, and no new loans were made from the program after that date.

Starting around 2008, ED bought some FFEL Program loans from the original lender. Payments made related to these FFEL Program loans are covered under the settlement, and eligible borrowers will receive a refund ("ED-held" FFEL).

How do I know what kind of loan I have?

If the name of your servicer starts with "Dept. of Ed" or "Default Management Collection System," your loan is held by ED and may be eligible for a refund.

• You can identify your loan types by logging on to StudentAid.gov and selecting "Loans" in the dropdown menu under "My Loans." In the "Loans and Repayment Information" section, you'll see a list of each loan you received.

More information about the federal student loan programs is available at StudentAid.gov/understand-aid/types/loans.

If you have questions about this notice, please call our borrower defense hotline at 1-855-279-6207. You may visit StudentAid.gov/contact for our hours of operation.

Sincerely,

U.S. Department of Education
Federal Student Aid

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I couldn't even believe it. I must have asked AI a hundred different times to make sure it wasn't hallucinating or I wasn't dreaming, but invariably, it kept saying:

"What you have is a Settlement Discharge. You are receiving this because of the "Presumptive Relief" clause in the settlement. Think of it like a "speedy trial" rule: if the government takes too long to process your case, they have to drop the charges (or in this case, drop the debt)."

Then I found this subreddit and read the case. Somehow I filed my paperwork just at the time to cause these events. If I had filed it a day earlier, this might have happened even sooner. Or who knows, maybe I would have been denied and this was my fate.

Now, I'm $50k less in debt to the government.

That $50k by the time I paid it probably would have been $150k – with interest.

And all for what? For nothing of value, that is for certain. I didn't learn a damn thing and just got swindled by a scam university in a scam education system.

Good riddance, and I'll sleep tonight wishing that anybody reading this, especially if you made it this far: I hope you get relief. I hope you get your loans discharged. The system is messed up, and they will use that debt to ensalve you for the rest of your life. I only escaped by some weird loophole.

I can think about my future now. I can buy a house now. I can actually be the productive and successful member of society that I thought a university degree was going to make me. Instead, ironically, it did the opposite, and only by breaking free of that system, am I now finally able to grow and evolve as an individual.

Good luck everybody, and I hope they send this letter to every single person with any kind of loan.

I also guess I am fortunate that I was too poor for any private loans and had too bad of credit. Saved my life! The one time that being poor paid off. Thank God!