Student debts from the Art Institute are a nightmare. Don't misunderstand us. Student debts may either be a great investment in your future or a huge burden for the rest of your life. Thousands of people would be paying off their student loan debt for the rest of their lives if it weren't for the Art Institute case. In this article, we will go over all you need to know about art institute loan forgiveness in a nutshell. Kiswahili Past Papers and Answers
Lawsuit Against the Art Institute
A Senate inquiry into The Art Institutes in 2012 discovered ample evidence of fraud, including massive tuition price spikes that compelled students to either pay more money or forfeit their chance to graduate. The Art Institutes also maintained a skewed personnel ratio of five recruiters for every student services staff member.
Following the inquiry, the Department of Justice accused Education Management Corp, the previous owner of The Art Institutes, with $11 billion in government funding theft. Education Management Corp agreed to a $95 million settlement to avoid additional legal action for alleged consumer fraud and unlawful recruiting practices.
Along with the settlement, 39 states and the District of Columbia agreed to cancel $102.8 million in student loans for about 80,000 former Art Institutes students. Federal loans, on the other hand, are still being collected from former students by the Trump administration. This includes confiscating tax refunds and garnishing salaries in some situations.
Art Institute Discharge Options
Former Art Institute students can request art institute loan forgiveness in two ways:
- The Borrower's Repayment Defense Program
- The Student Loan Discharge Program for Closed Schools
To access the portion of this Guide that covers the specifics for each program, click the links above.
You are unable to apply for both programs. As a result, you must select the student debt forgiveness program that provides you the best possibility of really repaying your loans.
Let's look at the differences between the two programs so you can decide which one is better for your scenario.
Borrower’s Defense Against Repayment
The Borrower's Defense Against Repayment is a program established by the federal government of the United States to assist student borrowers who secured loans to complete their education at institutions that afterward acted fraudulently or dishonestly. The initiative serves as a government attempt to assist such students in continuing their studies.
In the Art Institute case, it was established beyond a reasonable doubt and in court that Educational Management Corporation committed various fraudulent activities while operating its Art Institutes. Under the circumstances, every individual who owes Art Institute student loans is immediately eligible for art institute loan forgiveness under the Borrower's Defense program. You can get a whole loan discharge with this program.
Closed School Discharge Program
The program is run with the federal government's ongoing engagement for students whose universities collapsed before they completed their degrees. That is, you are qualified for the program if your school shuts down before you finish your degree for one of two reasons. With this program, you must have been a student before the school closed or have quit attending within 120 days of the school closing.
Who Qualifies to Apply?
There is a wealth of information available regarding the Closed School Discharge Program on the internet. You may feel overwhelmed and disoriented in all of the information they provide. As a result, we have simplified the information so that you can evaluate whether advantages are appropriate for you.
If you satisfy two conditions, you may be able to cancel your Art Institute student debt:
- If you were a former Art Institute student before it closed,
- If you completed your degree or departed within 120 days of the company's closure,
Aside from these two, there are two minor conditions you must complete before applying:
You do not qualify if you are presently enrolled at another institute and have had your credits transferred from that institute.
You are not qualified if you completed your study before the institution closed but did not acquire your certificate.
It is worth noting that you can seek expert assistance. Every loan forgiveness option has pros and cons. Third-party debt specialist advice might assist you in making better selections. Furthermore, each option has its own set of application and qualification requirements.
Each year, thousands of applications are refused due to a lack of understanding of qualifying standards and technological errors made during the application process. Fortunately, “Student Loans Resolved” is here to provide you with immediate assistance in this respect. You may obtain a free consultation to better understand your situation with Art Institute Loan Forgiveness, and then let Student Loans Resolved handle the issue with genuine professionals.