In the last few months, former students of Drake College of Business have been sued by New Century Financial Services, Inc. regarding private loans that Drake issued to students when they enrolled at the college. These loans are not the same loans made under U.S. Department of Education federal student loan program. Instead, these loans were private loans issued by Drake, and many students were not even aware of their existence until being served with the lawsuit. As the defendants, these students are left to fend for themselves against a large corporation and its aggressive attorneys. We are here to help!
Back in 2001, Med-Com Career Training, Inc., purchased Drake, but continued to operate under the Drake name. Starting in 2010, Drake began to vastly increase its enrollment and advertised aggressively for students. Drake students relied on the federal student loan program to fund most, but not all, of the tuition costs for a Drake education. By design, federal student loans are not meant to cover all the tuition costs. Since many Drake students could not afford even the small amount of tuition not covered by federal student loans, Drake offered their own private loans to make up the difference. However, it appears that Drake may not have intended to collect on their loans as they had generous forgiveness provisions and payback periods. In 2010, news organizations reported that Drake was even recruiting the homeless. In 2015, Drake went out of business. However, the private student loans still survived, even though Drake had made little or no attempt to collect on these loans.
New Century, a debt collector, purchased these private student loans and began filing lawsuits against former Drake students to try to collect on the loans, using Pressler and Pressler, LLP, as its law firm. These loans may not be enforceable for a number of reasons. If you have been sued by New Century for a Drake student loan, please contact us for a free consultation to discuss your options.