You may be eligible for a discharge if:
- Your school closed while you were enrolled and you did not complete the program because of the closure.
- Your school closed within 90 days after you withdrew.
- Your school falsely certified your eligibility to receive the federal loan based on your ability to benefit from its training and you did not meet the ability to benefit student eligibility requirements.
- The school certified your eligibility, but because of a physical or mental condition, age, criminal record, or other reason you were disqualified from employment in the occupation in which you were being trained.
A depressed economy in the United States has been showing itself in many forms, including in for-profit technical and vocational schools, as well as private colleges and universities. Many of these independent higher education schools have closed their doors while the remaining institutions have been forced to reconsider new ways to do business in order to stay open. For example, some schools have implemented various programs to reduce or waive tuition fees for honor students.
Talk of increased government funding for community colleges also have a lot of these private schools concerned about future enrollment percentages and their ability to remain in operation. As the unemployment rate continues to remain high; wages continue to fall (for those Americans who are still working) and student aid becomes more and more of a necessity in order to obtain a higher education; independent institutions will continue to be at risk of closing.
Let’s face it! Many Americans are struggling to make ends meet. The fear of what will become of our country’s economic future is on the mind of many. Tuition costs have increased significantly over the past thirty years. The mix of an increased cost for higher education and a bad economy has also induced fear into many potential college students. The typical mindset can’t help but worry about obligating oneself to a large college student debt in a nation with a “not- so-appealing” job market.
Loan Discharge for School Closing
For those students who were enrolled in a private higher education school program that closed, but are still confused about what to do about open and unpaid student loans, there may be an answer. Many students who were enrolled in higher education programs that closed their doors may be eligible for a school loan discharge. Students who are eligible for a discharge must have been unable to complete the program of study in which they originally enrolled. In addition, the student must have attended classes within ninety days prior to the school officially closing. Some exceptions may apply.
Other circumstances, such as False Certification, also may make a borrower qualified for a discharge on a student loan. The following are just some of the other reasons someone may be qualified for a student loan discharge:
• Any school (closed or active) that failed to test a student’s potential or verify mandatory prerequisites (i.e. high school diploma, mental and/or physical condition) prior to admission • School representative signed student’s name on a loan application or promissory note without authorization and student did not attend class • School failed to reimburse student for a tuition refund required by federal law • Loan was issued as a result of identity theft • Student is a spouse or parent of an eligible public employee or victim who died or were permanently disabled as a result of the September 11, 2001 terrorist attacks
We are successful at assisting student loan borrowers with unmanageable student loans to get out of default, refinance, consolidate and even qualify for loan forgiveness.
If you are eligible for a student loan repayment program to reduce or discharge student loan debt, we will find it. The entire process typically takes four to six weeks. So what are you waiting for? Let’s get your finances back on the road to freedom.