Loan Relief Options – Unapproved Schools

If you have loans from a school that operated without approval from the Bureau for Private Postsecondary Education (BPPE), you may potentially be eligible for loan relief.

Students may not need to repay any debts incurred to attend an institution that did not have the required approval or registration to operate in California. These loans are “void and not enforceable” under California Education Code section 94917.

94917. Enforceability of Loans

A note, instrument, or other evidence of indebtedness relating to payment for an educational program is void and not enforceable unless, at the time of execution of the note, instrument, or other evidence of indebtedness, the institution held an approval to operate or valid out-of-state registration with the bureau.

To simplify: if a school did not follow the law, you may not have to repay the loan.

Take action in 3 simple steps

Note: See “Legal Disclaimer” below. For further assistance, contact OSAR.

Determine your school's approval status.
Dispute loans that are void and not enforceable. (Sample letters below)
Share your results! This helps us support other students.

1. Determine your school's approval status at the time you signed the loan

BPPE maintains several resources to help you determine the approval status of a school. Please note that these lists are not comprehensive. Many unapproved schools do not appear on these lists. If you have questions about a specific school, contact OSAR.

Approved Institutions – Use this page to find a school's current approval status. If a school is currently approved but operated without approval when you enrolled, you loan may be void and not enforceable.
Denied Applications – institutions that applied for approval or renewal of approval to operate and were denied. This list is not comprehensive.
Expired Approval – Institutions that fail to submit renewal applications on time lose their approval and become unapproved.
Unapproved Activity Citations – In some cases, BPPE issues citations when schools operate without approval. If BPPE issued a citation for “Unapproved Activity,” you can include this in your dispute. Please note that this is not a comprehensive list. If you suspect your school was unapproved, contact OSAR.

2. Dispute the loan as void and unenforceable (Click for samples)

Disclaimer: These links are provided as a convenience and for informational purposes only. They do not constitute an endorsement or approval of any external entity. The BPPE and OSAR bear no responsibility for the accuracy, legality or content of external resources, and we do not control whether or how external entities update their content over time. For questions about content by external entities, please contact the external entity. Please also see the “Legal Disclaimer” below.

If your loan is void and unenforceable, assert your rights by informing the company that is billing you. Provide supporting documentation. You may also ask the company to prove they are collecting on a valid debt. If they cannot show that the debt is valid, the company should stop collecting from you and correct negative credit reporting.

The templates and examples below are provided as resources. OSAR does not endorse any external organizations.

Sample Collection Dispute Letter – CFPB Template
Sample California Request for Information – Private Student Loans
Sample Arbitration Demand with CEC § 94917 – Arbitration Demand
Sample Complaint with CEC § 94917 – California State Complaint
Sample Credit Report Dispute Letters – CFPB Explainer and Templates

3. Share your results

When you assert your rights, it helps other students too. Share your success or tell us about roadblocks so we can help you and other students assert their rights.

Additional Resources

Attempts to collect on void and non-enforceable loans may violate students' rights and state and federal financial protection laws.

Report unlawful collection on loans that are void and not enforceable. Follow the links below to submit complaints to the following entities.

Legal Disclaimer

This site contains general information provided as a convenience for informational purposes only and does not constitute legal advice. The information may not reflect current legal developments or address the specific details of your situation.

Your use of this information does not create an attorney-client relationship. You may want to seek legal or other professional advice prior to acting based on this information. We disclaim all liability for actions you take or fail to take based on any content on this site.