The department sent many dollars to 2 schools that had lost their accreditation and were not eligible for the federal loans.
About 1,500 students who attended two art institutes that were a part of the sudden collapse of a career-school chain this year will have their federal loans canceled, Education Secretary Betsy DeVos said on Friday.
It was a rare victory for borrowers seeking debt relief from a department that, under Ms. DeVos, has frozen or curtailed relief programs for college kids who claim that schools defrauded them. Borrowers who attended the 2 schools, the Art Institute of Colorado and therefore the Illinois Institute of Art, sued the department last month, seeking to possess their loans eliminated.
“Students were failed and need to be made whole,” Ms. DeVos said. Students who attended the faculties from late January 2018 through the top of last year, once they pack up , will have their loans for that period canceled, the department said.
Borrowers will still generally owe on federal loans they took out before Jan. 20, the department said in an email sent to borrowers on Friday. Some people, however, may qualify to possess all of their loans eliminated through the department’s closed school discharge program.
The decision was the newest twist within the messy unraveling of the chain, Dream Center Education Holdings, which owned dozens of campuses under the Art Institutes, South University and Argosy University brands.
Students are eligible to benefit from student forgiveness if they can successfully do one vital thing. As a student must successfully connect their Borrower’s Defense Claim to the lawsuit that brought down the Art Institute and its fraudulent activities. Please find below some of the necessary details you need to add to your application.
Monetary settlement figures
Links to reputable sources
Any other details you can provide to help build a strong case against the school.
Only after including all the necessary information, should you submit your application. Provided your application is successful, you can enjoy the art institute loan forgiveness, and get refunds for all your previous loan repayments. Since the benefits of this program are so significant, you don’t want to do anything that disqualifies you. Therefore, remember to pay close attention to the details and make sure to enter all the information required on the application form correctly. The application process isn’t challenging, but as mentioned earlier, you must complete it with extreme care. Please refer to the section below for details on the application procedure.
To successfully file a claim for the Borrower’s Defense Claim, you need to point out the facts that the school violated the law in its dealing with you, and you enrolled in the institute as a result of illegal marketing tactics employed by the school. The writing of the claim has to be thorough, living no stone unturned. In other words, it needs to be clear to whoever will process your claim that you would have never taken out a loan from the Art Institute to complete a course if you would have known otherwise.
Remember to emphasize the fact that you were misled by the Art Institute in the matter of the loan. This is easy to prove because the Art Institute agreed to make about $200 million available to students. For those who don’t know the full details or are not sure about the details of the Art Institutes dealings that led to its recent closure, please read the section below to find all the information you need to build a solid case.