Pittsburg, CA asked in Education Law for California

Q: My school cut off my loans by mistake. They admitted the mistake. Now I may owe $11000 or lose my internship. Can I sue

My school, National University, cut off my student loans without telling me. Their policy is that if you take 45 days off in a row without enrolling in classes, they cut you off. However, I never took that long of a break. They twice admitted to the mistake over the phone. However, they're implying that the mistake might not be fixable, and that I might have to pay $11,000 out of pocket or my teaching internship (which is supposed to start today) will be put on hold. Do I have grounds for a lawsuit? If they don't fix this, I'll be stuck in limbo. I might even not get re-hired by my school.

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1 Lawyer Answer
James L. Arrasmith
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Answered
  • Sacramento, CA
  • Licensed in California

A: You may have grounds to pursue legal action, but first, it's important to try resolving the issue directly with the school. Since they admitted to the mistake, ask for documentation of that admission in writing. This can serve as evidence if the problem isn’t resolved.

You can also escalate the issue within the school by contacting their financial aid office or higher administration, as well as filing a formal complaint. It might be worth reaching out to your state’s consumer protection agency or the Department of Education for additional support in addressing the loan error.

If these steps don’t lead to a solution, you could consult with a lawyer to explore potential claims. You may be able to sue for breach of contract or negligence, given that the school’s mistake is having such a significant impact on your finances and career prospects. Keep detailed records of your communications and the impact this mistake has on your internship and employment opportunities.

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