Full question:
I was a student at a private university. I filed a lawsuit alleging breach of contract and disability discrimination. We agreed to an amicable settlement, the settlement agreement very broadly waives any right to future claims. Can the university waive my right to file a borrower's defense claim with the Department of Education (DoE) to discharge my student loans? There is some ambiguity here because the claim would be between me and the DoE, but the DoE would make an inquiry with the university in their investigation and potentially hold the university accountable for the debt incurred while attending the university. Also, this claim falls under new legislation created during the Obama administration in Nov. 2016 to protect students from breaches of contract by universities... ("The borrowers defense to repayment") It does not yet have precedent on how the courts are interpreting it. Does my settlement agreement / release of claims waive my right to making such a claim? Thank you
- Category: Contracts
- Subcategory: Releases
- Date:
- State: Oregon
Answer:
I could definitely depend on the wording of the release language but if they are separate and distinct claims and different parties, it could be that the claim regarding the student loan would not be barred. Also if the cause of action arose after the settlement agreement it would generally be maintainable.The Court construe release language against the Company being released and if the language is over broad and includes language like "future claims" it may not be enforced by the Court.
Each case would turn on it's own facts so there is no clear yes or no answer.
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