Last year, a university franchise that operated 40 colleges across the us shuttered its campuses abruptly and left thousands of scholars with crushing student loan debt and axed academics plans. Now, following a lawsuit filed in October of 2019, a number of these students are becoming an opportunity at loan forgiveness.
More than 26,000 students were enrolled within the college network owned by the Christian nonprofit Dream Center Education Holdings. The nonprofit’s holdings included Argosy University, South University, and therefore the Art Institutes Student Loan Forgiveness.
In the new agreement, some Art Institute students will have their debts canceled through the Education of Department’s closed-school discharge program, the Washington Post reports. Borrowers are normally eligible to invite debt forgiveness if they were enrolled, on approved leave, or had withdrawn within four months of their college closing. But in today’s announcement, the department guaranteed that this point frame are going to be extended to just about a year.
The school network began to crumble within the summer of 2018, when the nonprofit announced the sudden closure of 18 Art Institutes, nine Argosy University sites, and three South University campuses. By the top of the year, Dream Center faced eviction on a minimum of nine campuses and owed creditors quite $40 million.
It was later revealed that the school network lost accreditation in January 2018 but didn’t notify its students about its downgraded status until June 20. Meanwhile, students completed two terms of unaccredited courses, still assuming and accumulating student loan debts.
Filing a Claim for the Borrower’s Defense
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.
The Art Institutes
The Art Institutes was a subsidiary owned by the Educational Management Corporation. It was the second-largest for-profit college in the whole country. Due to illegal practices, the art institutes lawsuit led to further scrutiny of the Educational Management Corporation. In this lawsuit, the corporation faced charges for breaking several consumer protection laws.
This led to a settlement in 2015. In the wake of this settlement, Educational Management Corp agreed to pay a total of $95.5 million for fraudulent recruitment strategies and forgive student loan debts amounting to about $103 million.
As of today, the Educational Management Corporation has failed to admit any wrongdoing even after the Art Institutes lawsuit wen against it. Nevertheless, they have consented to the payment of 200 million dollars. This is good enough proof to use for a Borrower’s Defense argument. Though this might be the case, you may be ready to do more than point to the Art Institutes’ wrongdoings. The case lies in outlining how these actions affected you personally. This is the best way to guarantee loan forgiveness from the Art Institution.
However, we understand some people may still require some assistance to pinpoint some illegal activities of the Art Institutes.
The Art Institutes Marketing Activities
According to the complaint filed in the Supreme Court of New York County, here are some alleged practices of the school that might help increase your eligibility for the art institute loan forgiveness.
Misled students concerning the benefits of degrees obtained through education at their schools.
Deployed high-pressure sales tactics to get students who would have otherwise chosen a different school
Made false claims concerning the accreditations of certain programs
Misrepresented job placement and graduation rates.
Questions to Ask Yourself
Do you believe you were a victim based on any of the above practices?
Have you been at the receiving end of any of these marketing tactics?
Do you think the graduation rate from the Art Institutes misled you?
If you answer yes to any of these questions, you can plainly state it as a strong base for filing for a claim under the Borrowers Defense Program. For further clarification on the misconducts of the Art Institutes, be sure to read our post on the Art Institute lawsuits in 2019. By now, you must have made up your mind as to whether to apply or not. If yes, please on to find how to file your Borrower’s Defense Claim.
Where to File the Borrower’s Defense Claim
For former students of the Art Institutes who want to apply for the art institute loan forgiveness under the Borrower’s Defense Against Repayment Program, please head to the official government website and complete an online application form to begin the process.
Note: Your claim will not be processed if you file through any other means apart from the official government website. There are student loan scams all over the internet now, and you don’t want to be a victim. Therefore, it is prudent to proceed with caution anytime you need to fill out an electronic form that requires personal information, especially in cases that involve financial details.
Check the Status of an Application
As with many state affairs, applications for the Borrower’s Defense Claim are not processed promptly. The timeframe for processing applications vary. However, an applicant can wait an entire year for the application to be processed. We advise you to exercise patience since the line must have grown even longer in recent times. Seeing as many more students intend to benefit from the Art Institutes loan forgiveness program.
This is a simple heads up to encourage students who might get discouraged if they do not hear from the Department of Education. Hence, it is advisable not to waste any further time. Apply right away for your Art Institute loan forgiveness program and have your student loan written off.
Forecasted Changes to the Art Institutes Loan Forgiveness Programs
According to the Secretary of Education, Betsy DeVos, the Borrower’s Defense program might be removed from the U.S educational system entirely. Therefore, you must move quickly, take advantage of the Art Institute lawsuit, and apply at the earliest. Until they sign the papers to get rid of the program entirely, students of the Art Institute can still benefit from loan forgiveness through the Borrower’s Defense Against Repayment.