Educational Management Corporation has been one of the hot topics for many years. It is a company that includes several Art Institutes under one central management and has been famous for fraudulence. For many years the company has led fraudulent marketing strategies, deceiving students to take out loans to attend their schools. That is the reason why many students are seeking for forgiveness programs on the basis of the Art Institute Lawsuit. Fortunately, the Art Institute student forgiveness program has become the hope of getting rid of their debts entirely. In this article, you will get information about the Art Institute student forgiveness program and how to file an application to be granted. Before getting deep into the forgiveness programs, let’s have a look at what stands behind this program.
Starting from 2013 the Educational Management Corporation has experienced conflicts with the government, and in 2015 it became obliged to pay nearly $200,000,000.
Although during Obama’s presidency, the government put high pressure on this kind of for-profit schools, by the arrival of Republicans the force diminished and left its place for relief. Not missing the chance, Educational Management Corporation kept its fraudulent behavior charging the student more by skyrocketing the interest rates and leaving no room for the students, but claiming. However, the company has stood firm against various lawsuits such as Art Institute Lawsuit without admitting its violations against the law. Surprisingly, in many cases they have accepted paying or forgiving high amounts of money; they never acknowledge their misconduct.
Art Institute student forgiveness program
Thanks to the government’s supportive attitude, the graduates of the Art Institute can still have a chance to get rid of their student loans and apply for one of the Art Institute student loan forgiveness programs. In this situation, the students have two options: The Borrower’s Defense against Repayment Program or The Closed School Loan Discharge Program.
Despite all the benefits, the sad thing is that it is not possible to apply for both of the student forgiveness programs. You need to decide on the best one depending on your situation. To let you through we will have a detailed look at each of the options below.
Borrower’s Defense against Repayment Program
Since the Art Institute schools lied to their prospective students to make them agree to enroll their institutions by violating the law, the government made Borrower’s defense against repayment plan program. The program aims to help students trapped by the educational institutions which deceived both the government and the students. The good news which can make you happy completely debt free within the Art Institute student forgiveness program. Thousands of students went under a considerable amount of student loan debt hoping for high-quality education, and now all these students deceived by the Art Institute are qualified to apply for a Borrowers Defense program. Like many of the other students, you can get full forgiveness on your Art Institute student loans.
However, there are some key factors that you need to take into consideration. Before applying for the Borrower’s Defense program, you need to link your student loan debt to the Art Institute lawsuit to take advantage of this loan forgiveness program. The main thing is that with the help of facts and figures you must prove that the Art Institute has committed fraudulence. You need to demonstrate a connection between the Art Institute lawsuit and the institute’s fraud if you wish to be eligible for the Art Institute student forgiveness program. Right below you can find information on the application procedure.
The Way of Writing Your Borrower’s Defense Claim
While filing your application, the most important point to pay attention to is clearly emphasizing the fraud as a reason for your decision to take out the student loan. You need to state all the deceiving actions they have taken to convince you to attend their school and to take out a credit to pay for your tuition fee. You need to explicit that without their effort to persuade you would never choose this school, neither you would apply for a student loan by going under such a heavy burden. If you fail to show the link between your decision to take out a student loan and Institute’s fraudulent marketing strategies, you will fail to be qualified for the Art Institute student forgiveness program, as well. What will make your work more comfortable is the fact that the Art Institute has already agreed to pay $200,000,000 and it would less likely happen if they were not guilty?
What is Art Institute Lawsuit based on?
In 2015 Educational Management Corporation received the Art Institute lawsuit against its misbehavior, and was found guilty of violating consumer protection laws. Since the Education Management Corporation includes the Art Institutes, the later got accused as well as its main body. The government left them no other way, but forgiving student loans. Not surprisingly, they forgave $103,000,000 towards the student loans. Additionally, within the whistleblower, they paid $95.5 million because of violating federal law.
Illegal Marketing Activities of the Art Institute
The illicit activities that made the company guilty were various. Firstly, they misinformed students on their graduation rates and misinterpreted the number of graduates who had achieved finding a job in their field. Secondly, although they were not accredited, they pretended as if they were rightful for licensure. Thirdly, the convinced students about the programs at their schools to be more beneficial than they really are. Finally, they put high pressure on the indecisive students to choose their programs and take out a student loan to attend to any of these programs offered by the Art Institute.
If you are one of the students trapped by the Art Institute and any of the cases stated above sounds familiar to you, it can be your reason to apply for the Art Institute student forgiveness program.
Filing the Borrower’s Defense Claim
If you have decided to apply for this forgiveness program, you need to go directly to the official website designed for this purpose. It is not recommended to use any other site since it might be a scam.
Checking the status of the application
The processing time can be lengthy. However, it should not make you discouraged. It can take a year and even more since the line of people who are applying for the program is getting longer. Since we expect some changes in the forgiveness programs, you should file your application as soon as possible. If you apply before any change is made, your claim will still be valid.
Closed School Discharge Program
If you find the application procedure of the Borrower’s Defense Program, you can apply for a closed school discharge. The requirements are quite simple: either you had to be enrolled when the school shut down or had graduated no more than 120 days before.
If you are still indecisive about which Art Institute student forgiveness program to choose based on the Art Institute Lawsuit, you need to scrutinize the programs from all the aspects. Although the closed school discharge procedure is faster than the other, there are some cases that can leave you ineligible for this program. Firstly, if after the school closed you transferred your credits to another school, you can not be eligible. Secondly, in case you had finished your education and were waiting for your diploma at the time when the school went to closure, again you are not eligible.
Which Program is Better: Closed School Discharge or Borrowers’ Defense?
If you qualify both programs as a result of an art institute scam you face or any other issue, it can be a tough decision. Before choosing one, consider your conditions. Closed School Discharge is a fast solution that can bring a full elimination of debt. However, you should not pursue a comparable degree at a different university to be eligible. On the other hand, Borrowers’ Defense to Repayment requires complete proof of the case, and you will not be able to get forgiveness if you cannot prove that you faced misconduct.
How to Write a Borrowers’ Defense to Repayment Claim?
Before starting your application, you need to collect all the necessary documents and proofs. Any proof similar to the claims in the Art Institute class-action lawsuit can make you eligible for the Borrowers’ Defense. Try to record the communication details with the officials or false advertisement materials to support your arguments. Also, be as clear as possible while explaining what happened and why you think you qualify for this forgiveness opportunity. Emphasize the point that you would not have chosen the school if you were not deceived or misled by its wrongdoings.
What Other Options Do I have?
As a result of the Art Institute Lawsuit, you can be eligible for Borrowers’ Defense to Repayment and Closed School Discharge. If you do not qualify, you can check other loan forgiveness programs such as Public Service Loan Forgiveness. Besides, you can benefit from consolidation, refinancing, or settlement with private lenders. These options will not discharge the debt, but they will help to manage the loan effectively. Plus, you can take advantage of different Repayment plans to be able to meet the debt obligations with the current level of income.