Student loans whether private or public helps students financially support themselves while they attend colleges. Not all of them became capable of paying back the loan debt for specific reasons. Some schools get closed, and students could not get a diploma and technically have a degree. Besides that, while universities are spreading falsified information about their reputation, those students who believe in them get nothing in return. After graduation, they cannot find high salary jobs and subsequently have a hard time while trying to pay back the loan amount. For former students of the Art Institute, the case might change sooner than later because Art institute loan forgiveness is on the corner, and it is set to happen.
Art Institute Loan Forgiveness Background
Recently, the Department of Justice filed a lawsuit against this university, which resulted in 11 billion federal funding fraud. Parties agreed upon 95 million dollars to prevent further legal actions against the university. So, this decision paved the way for the art institute student loan forgiveness program that former students were waiting desperately for. The university was the first one that tried these unlawful acts. In recent memory, there were more than 40 individual and chain universities that got closed because of practising these actions. The list includes Le Cordon Bleu University and its campuses in different states, ITT Tech Institute, Brightwood Career Institute, and more. While considering the fact that all of these institutions had several campuses around the country, it is no brainer that thousands of students lost their opportunities to graduate.
What are the For-Profit Schools, and how they affected students?
We have various guides on the above-mentioned subjects, but for now, our primary goal is to dig deeper into the Art Institute loan forgiveness case and find out options that can help you. As the Art Institute was a for-profit school, let’s explore more about that particular issue first.
In general, for-profit schools, as you can guess from the title, are the private universities that students attend by paying considerably high tuition fees. So, on the other hand, this means that those students are either wealthy or take a high amount of student loans with massive interest rates. We will focus on the second option because it is more appealing to the context of Art Institute loan forgiveness. For-profit schools take loads of money from students and operate as a business corporation. While public school tuition fee goes for providing necessary services and giving salary for professors, in for-profit schools the student tuition includes the salary of the board of directors, CEO of the private school, etc.
Throughout the last decade, for-profit schools have struggled in many areas. The graduation rate of those universities dropped significantly while the number of students that attend each year has decreased. That was the main reason why most of them employed falsified ads and misled students to increase the rates and numbers. Fortunately, the Department of Education took action and tried to protect students. Just like any of those universities, the Art institute faced several lawsuits regarding the case. In the end, they decided to shut all its campuses down, and from that, the Art institute loan forgiveness program became a chance for students to eliminate their loan debts.
Before we dive into the Art Institute loan forgiveness options that you can utilize, let us briefly discuss the background story.
Why the Art Institute Got Closed?
According to the attorney general of Iowa state-Tom Miller, the Art Institute got closed because of their fraudulent actions that included lying to students about job placements of former students and the cost of their programs. Besides them, the Art institute did other illegal activities such as charging students for vocational programs and selling the accreditation for those students who were unable to get it through studying.
The lawsuit against the Art Institute
Starting from2012, the Senate investigated the Art Institute and found enough evidence to call out the university. They stated that the university was making fraudulent actions by asking for high tuition fees and forcing students to pay that if they want to graduate. As we already mentioned, following this lawsuit, the Art Institute agreed to pay back 95 million dollars for their actions. For over 80.000 former Art Institute students, this was the chance to get their loan forgiven. That was mainly about private loans, and students who hold public loans were still paying for their loan debts. So, students started to search for possible options to solve this issue.
What did the Art Institute do wrong?
The university used illegal and aggressive recruitment techniques and marketing campaigns to make sure that students choose them as the primary option
They misinterpreted various statistics to recruit more students. In general, the transfer credits process was inflated to present it like it is easy to transfer credits to another university. In reality, it was tough and almost impossible because the university unbaled this service for students.
Besides these, the Art Institute misinterpreted the curriculum and made it seem like students will take more advanced classes and have more opportunities for growth.
Eventually, tides have changed, and the Art Institute was forced to pay for all their fraudulent actions as a result of countless lawsuits against them.
Which options students have?
There are two options for students if they want to acquire Art Institutes student loan forgiveness. The first one is through the BDAR program, and the second is through the Closed School Loan Discharge. Keep in mind that, you cannot apply for both programs. That is why it is advisable to do research about both and evaluate your case after that. Both options can help students in a variety of ways. So, let’s get into that, and assess them one by one so that you can determine which one applies to you.
BDAR for Art Institute Loan Forgiveness
If you would like to benefit from Borrower’s Defense to Repayment program, read carefully. This program intends to help those students who attended schools because of their fraudulent actions. Those students became victims of the situation because the school was lying, and they took thousands of dollars in student loan debt. In our central topic-Art institute, we discussed the various occasions that the university used illegal practices. So, that puts former students of the university in a good position regarding BDAR. Till now, hundreds of students got the chance to get approval for Borrower’s defence to repayment application against Art Institute. Do not lose your hope yet, and follow these steps to reach your primary goal.
Be prepared before submitting your BDAR application because by providing wrong information or having some errors in the documents, your chances of getting approval will vastly be diminished. You will need to address specific issues and present facts, recordings, screenshots that prove your point. Look at the application as if you are writing a case scenario and write accordingly. You need to build rational arguments and state only the things that The Art Institute did to you.
Whether or not they were found guilty in the previous lawsuits, you cannot claim that they did those fraudulent acts against you, in case if they did not. They agreed on a debt settlement in court for over 100 million dollars. That is why you need to use this chance effectively. If you are eligible and have a strong case with a well-written base, you will acquire full Art Institute loan forgiveness. So, let’s analyze the process in more detail.
How can you write your BDAR application?
While writing your BDAR claim, the essential part of the application is the introduction. You need to express why the Art Institute is guilty and the critical details of their lawsuits regarding the case. Do not start with your situation and make a quick overview before stating facts about your case. After that, write down why you chose the university in the first place. You need to prove that if the Art Institute did not do those illegal marketing campaigns, you would not choose them as the first option. You got deceived by those fraudulent ads and misleading information, so you decide to choose this university for better prospects.
If you cannot fully explain this point, unfortunately, your application will not be approved by the Department of Education officials. Keep building your arguments around this line and prepare a strong case for your taking the federal or private student loan for attending this university. The Art Institute agreed upon paying back some portion of the money to students. So, this is an ideal moment for you to acquire loan forgiveness for Art Institute students. All you need to do is show how the university’s manipulative tactics affected your decision and led you to take the loan. While writing these points down, be specific about cases and try not to generalize the topic. Write
- What they offered you
- How you saw the ads
- Provide information about how they contacted you
- Attach files if you have records of those calls, emails, chats, etc.
Where can you file your BDAR application?
The United States government has an official website regarding Borrower’s defence to the repayment program. By entering that site, you can attach your BDAR claim and wait for results. Side note for these issues is that you should never provide any information about your case to their party companies or individuals. Whether it is student loan consolidation or loan forgiveness, keep your application safe and do not submit it on any other platform than the official one. The industry is full of student loan scams. Those criminals can steal your sensitive information and sell it to other companies. That is why it is best to approach this case very carefully.
Can you check the status of your BDAR Claim?
The Department of Education will let you know as soon as they proceed with your application and come to a conclusion about approval or rejection. You need to be patient throughout the process. There are thousands of other students who apply for the Loan Forgiveness Art Institute program. Thus, the result may come later than you expected. Unless you get a rejection, there is no reason for being pessimistic.
Keep in mind that the process can take even several months. Be patient because you will get information about the status of the BDAR claim during the year period. The critical aspect is that, as soon as you write your application, you need to submit it. There might be changes in the future regarding the program, and you might lose your chance for Art Institute loan forgiveness. To avoid these types of complications, write it quickly and submit it as soon as possible.
What about utilizing Closed School Loan Discharge as the second option?
If you belong to the segment of students who thinks that they chose the Art Institute on their own and external factors such as fraudulent actions of the university did not intervene in their decision-making process, then it is okay. There is another option that you can use to get rid of the loan debt. As we all know, the Art institute closed its campuses and operations after the settlement in lawsuits against the university. As a matter of fact, the former students can use student loan discharge for closed schools in this particular case. It is the best way to maximize your chances of receiving the Art institute student loan forgiveness. But what about eligibility requirements? Who can apply for this program? Let’s discuss that.
Student Loan Discharge Criteria via Closed School Program
You may get the full loan consolidation if you own
- Direct Loans
- Federal Perkins Loans
- Or FFEL (Federal Family Education Loans)
Besides, these conditions should be met to become eligible.
If you were studying in times when the school got closed
If the university got closed during a period of 120 days after your graduation
The last criteria are if you took the academic leave during the time when the university got closed
Certain criteria can make you ineligible to get approval for the Art Institute Loan Forgiveness
In case if you:
- left the school more than 120 days before it closed
- transferred your credits to another university at that time
- used the teach-out method
The last option that can reduce your chances of getting approval is to complete all the academic coursework for your study program.
If you can meet these requirements, you can apply for the program and wait for approval.
How can you apply for this program?
Just like in BDAR, students can apply for the CSLD program via the government’s official website dedicated to this option. You will need to log in to your account via the student aid dot gov. After that, all you need to do is provide the related information and submit the form for closed school loan discharge. Keep in mind that the only official form of application is this one. You should never let anyone have access to that form or sensitive information that you wrote there. During the process, depending on the private or federal student loan you have, you will need to contact lenders, or loan servicers for finishing the application phase.
Which program is better?
Many students have a hard time while choosing between these two options. As you would miss the chance of applying to one after selecting the other, your final decision should be well-thought-out. You need to evaluate each option step by step and see which one is applicable to your preferences. Eligibility is another issue that you need to consider while selecting either of the options.
You might be eligible for both programs simultaneously. The real question in that situation will pop up on your mind. Which one to choose? If you have a stable income and can pay for several months until you get approval. Then, we advise you to take the first option and use BDAR. Though, if you face financial problems and cannot handle loan debt long enough, the best option for you would be closed school loan discharge. In the end, the choice is yours. It is up to you to decide which program is the best option for receiving the Art Institute Loan Forgiveness.