Former students of a now-defunct chain of art schools who remain saddled with federal loans have a far better chance of that debt being erased under an appointment confirmed Thursday by the Department of Education .
The agency has agreed to expand the amount of eligibility for former art institutes student loan forgiveness to possess their debts canceled through the department’s closed-school discharge program. Borrowers are usually eligible if they were enrolled, on approved leave or had withdrawn within four months of their college closing. rather than the quality four-month period, the department is extending the time-frame to just about a year for college kids at the Art Institute’s five locations.
The decision stems from a lawsuit brought in October by former students at the Art Institute of Colorado and therefore the Illinois Institute of Art against the department and Education Secretary Betsy DeVos. The plaintiffs accuse the agency of providing loans albeit Department of Education officials knew the faculties weren’t accredited and, as a result, ineligible to receive such aid. the previous students have argued that they ought to not be forced to repay loans that were issued unlawfully.
“Expanding the eligibility window back to January  means justice for more students,” Eric Rothschild, an attorney at the National Student Legal Defense Network who is representing the scholars , said Thursday. “The Illinois Institute of Art and therefore the Art Institute of Colorado were lying to students from the instant they lost accreditation in January 2018, and students deserve relief that reflects the complete extent of that deception.”
Documents released in October by the House Education Committee show that the department provided $10.7 million in federal aid to students at the 2 Art Institute of Colorado locations, the Art Institute of Michigan and therefore the Illinois Institute of Art in Chicago and Schaumburg for the 2018 spring semester. None of these campuses was fully accredited at the time.
The Department of Justice charged Education Management Corp, which also happens to be the former owner of the Art Institutes, a total of $11 billion for federal funding fraud. To prevent further liability and legal actions from various stakeholders, Education Management Corp consented to settle $95 million. The Art Institutes are not the only higher education institutions caught in the net of these lawsuits. Between 2016 and 2019, about 50 chain and individual colleges were made to forcefully shutdown. A good example is the case of ITT Technical Institute, Brightwood Career Institute, and Le Cordon Bleu Colleges.
Like the Art Institute, the closure of these institutes means enrolled students who took student loans are eligible for loan forgiveness. Keep in mind that different eligibility and requirements will apply to different schools and students. Students of the Art Institute, who were affected by the fraudulent dealings and closure of Education Management Corp schools can find vital information concerning art institute loan forgiveness on this page.
Type of Art Institute Loan Forgiveness
There is a glimmer of hope for students whose present and future financial conditions were affected by the recent closure of the Art Institute colleges. A large portion of students are getting loans forgiven under the Art Institute loan forgiveness programs. Students caught in the unfortunate incident of Educational Management Corporation’s demise can apply for loan forgiveness in two ways:
The Closed School Student Loan Program
The Borrower’s Defense against Repayment Program
Closed School Student Loan Discharge
The first student loan forgiveness program (The Closed program) is operational under the federal government’s long-standing intervention in the case of students from colleges that were closed down due to one reason or the other. Therefore, if your college closed down before you get the chance to finish your education, you may be eligible for this discharge program. Under this program, you must have left the school no more than 120 days before its closure, or you were still a student at the art institute before its close down.
These are the two general eligibility criteria for students under this program. Former students can obtain the art institute loan forgiveness under these provisions.
Who Is Eligible?
There is a lot of information online about the Closed Program. Students can, at times feel overwhelmed with an avalanche of information. Hence, we have simplified the information so you know what to look out for and determine if you can benefit from the art institute loan forgiveness program. To make the best of this information, please take your time to review it before carefully applying for the program.
As explained earlier, students get loans that they took during your study at The Art Institute written off if you meet two essential criteria.
If you happen to be a student at The Art Institute before its closure.
If you completed or left the school less than 120 days before the day it closed.
Apart from these two, there are two other minor requirements that you need to meet before you apply for an art institute loan forgiveness program.
These are :
Students currently enrolled in another institution after the transfer of their credit do not qualify
Students who have completed their coursework prior to the closure of the school but are this Discharge program.
With these three requirements in mind, you can confidently determine your full eligibility if you happen to qualify for the program. We strongly encourage you to apply at the earliest and benefit from the loan forgiveness. Keep reading to know how to apply for forgiveness.
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