Lincoln Tech Lawsuit: Settlements, Discharges, and Refunds

The main Lincoln Tech lawsuit that former students ask about is the 2015 Massachusetts Attorney General case, which ended in an $850,000 settlement over inflated job placement rates in the school’s criminal justice program and triggered automatic federal student loan discharges for a defined group of graduates. A separate class action over COVID-19 tuition refunds was filed in New Jersey in 2020 and was mostly dismissed in 2021, though claims over certain fees survived. Students outside the automatic-discharge group who believe they were misled can still apply individually for Borrower Defense to Repayment.

The Massachusetts Attorney General Case

In July 2015, Attorney General Maura Healey announced a settlement with Lincoln Technical Institute and its parent, Lincoln Educational Services, resolving allegations of deceptive practices at the Somerville and Lowell campuses.¹ The focus was the school’s criminal justice program, marketed as a route into law enforcement and private security work.

The AG’s office alleged Lincoln Tech reported job placement rates above 70 percent while the actual numbers were “materially lower.” Investigators said the school padded its figures by counting temporary jobs, part-time work, and roles unrelated to criminal justice, including general retail positions, as successful in-field placements.² Some records reflected placements for graduates who did not hold the listed jobs, who had obtained the jobs before enrolling, or whose job titles were simply wrong.³

Recruitment practices were also flagged. According to the AG, Lincoln Tech’s admissions manual told recruiters to “bring out the pain” in prospective students and used scripted questions designed to “establish unhappiness, create urgency.” Recruiters were required to contact prospects at least seven times in the first three days after an inquiry and were accused of steering people away from community colleges and the military.¹

Lincoln denied the allegations. Under the consent judgment filed in Suffolk Superior Court, the school agreed to pay $850,000 to be distributed to eligible criminal justice graduates of the Somerville and Lowell campuses and applied toward their federal student loan debt. Lincoln also forgave $165,000 in private student loan balances owed by certain graduates.¹ The Lincoln resolution was part of a broader $2.3 million package that also included Kaplan Career Institute.²

The settlement also changed how Lincoln reported outcomes going forward. The school was barred from counting jobs like restaurant server, childcare worker, or custodial staff as successful placements unless the role specifically involved duties tied to the graduate’s field. It had to provide written disclosures at least 72 hours before enrollment stating that it does not guarantee employment and has no agreements with employers to hire graduates. Claims that credits were transferable required proof of written agreements with the receiving institutions.⁴

Automatic Federal Loan Discharges Tied to the Settlement

The Massachusetts investigation had a second consequence that reached further than the state payment. The U.S. Department of Education reviewed the same evidence and found Lincoln Tech had made substantial misrepresentations that prospective students relied on to their detriment. The Department then approved automatic federal student loan discharges for borrowers enrolled in the criminal justice program at the Lowell campus between 2010 and 2012 and at the Somerville campus between 2010 and 2013.³

Eligible borrowers do not need to apply. The Massachusetts Attorney General’s office submitted their names directly to the Department, and the discharge follows from being on that list.³ If you were in that program during those windows and have not seen relief on your account, contacting the Department of Education’s loan servicer is the right first step.

The COVID-19 Tuition Refund Class Action

In December 2020, John Gaviria filed a class action against Lincoln Educational Services in the U.S. District Court for the District of New Jersey. Gaviria, who enrolled in February 2020, alleged the school breached its contract by collecting full tuition and fees for hands-on, in-person instruction and then moving entirely to online learning when campuses closed around March 16–17, 2020.⁵

The complaint said students paid an average of roughly $29,000 for tuition, books, uniforms, tools, and fees premised on access to workshops, garages, and laboratories, and it called the virtual alternative “materially deficient.” The proposed class covered all students who paid tuition or mandatory fees for in-person classes at any Lincoln Tech campus during pandemic-disrupted semesters. Lincoln reported about 10,000 students enrolled for the 2019–2020 school year.⁶

In July 2021, U.S. District Judge Kevin McNulty partially dismissed the case. The court rejected Lincoln’s argument that it was immune under the New Jersey Emergency Health Powers Act, finding money damages did not qualify as an “injury” to “property” under that statute. But the judge dismissed the tuition and nonrefundable registration fee claims, concluding the enrollment agreement and the school’s response to the pandemic provided a legal bar. Claims for student supply fees and on-campus technology fees survived, because the court found it plausible that Lincoln, after closing the campus, did not incur all the expenses those fees were meant to cover.⁷

Lincoln Tech in the Sweet v. Cardona Settlement

Lincoln also turned up in the national fight over borrower defense relief. In Sweet v. Cardona, a class action that produced a $6 billion settlement providing loan discharges to students of various for-profit schools, Lincoln Educational Services was one of the institutions whose former students were potentially eligible for relief.

In July 2022, Lincoln and American National College moved to intervene and objected to the settlement, arguing that appearing on a list associated with institutional misconduct caused reputational harm and could open the door to the Department of Education seeking to recoup tuition funded by the forgiven loans. Lawyers for the borrowers said the schools had no standing to block a settlement they sat out. The Department of Education also opposed the motion.⁸

Lincoln and the other intervening schools asked the U.S. Supreme Court to stay the settlement. On April 13, 2023, the Court denied the petition, and the $6 billion in relief proceeded.⁹ The related Ninth Circuit appeal was terminated in November 2024.¹⁰

If You Were a Lincoln Tech Student and Want Loan Relief

Former students who believe Lincoln misled them about job prospects, program quality, or other material facts may qualify for federal loan cancellation through Borrower Defense to Repayment. The program cancels federal student loans when a school engaged in misrepresentation, broke its contract, or withheld critical information that influenced enrollment.¹¹

Two paths matter here. If you were in the criminal justice program at the Lowell campus between 2010 and 2012 or the Somerville campus between 2010 and 2013, you fall inside the automatic group discharge and do not need to file an application.³ If you were in a different program, at a different campus, or in a different time period, you have to submit an individual application through the Department of Education at studentaid.gov/borrower-defense/. Applications should describe the specific misrepresentations, who made them, when, and what harm followed. Emails, catalogs, and advertisements strengthen the claim but are not required to apply.¹¹

One boundary worth naming: Borrower Defense discharges federal loans. Private student loans are outside that program. The Massachusetts consent judgment did forgive $165,000 in private balances, but only for certain graduates within that settlement.¹

1
Mass.gov. AG Healey Secures Additional $2.3 Million for Students Misled by For-Profit Schools
2
Boston Globe. Two For-Profit Colleges Settle Lawsuit With Attorney General for $2.3 Million
3
StudentAid.gov. Lincoln Tech Executive Summary
4
Republic Report. Lincoln Tech Final Judgment by Consent
5
ClassAction.org. Lincoln Tech Owes Refunds for Semesters Disrupted by Coronavirus Pandemic, Class Action Says
6
ClassAction.org. Gaviria v. Lincoln Educational Services Corporation, Complaint
7
Law360. NJ Tech School Trims Virus Refund Suit
8
Republic Report. Keiser University, Lincoln Tech Oppose Debt Relief for Broke, Scammed Students
9
Public Policy and Student Loans. Defense to Repayment
10
CourtListener. Theresa Sweet v. Lincoln Educational Services Corp
11
Student Loan Borrower Assistance. Borrower Defense to Repayment