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News about Heald College: Former students may be Eligible for Federal Student Loan Cancellation

federal loan cancellation

On December 13th, 2018 the Department of Education announced that they would approve $150,000,000 in Borrower’s Defense to Repayment Discharges. It included raising federal loan cancellations for students who attended the Heald College.

150$million put away for this period of approvals, and as a result, Heald borrowers are likely to get their Borrower Defense applications accepted and get their federal loan cancellation during the application process. Consequently, the Department of Education began to do warnings to those borrowers on December 14th, 2018.

This guide will present the case of Heald College and recommend several options for students to get rid of their loans. However, if you have further questions, you can contact our experts to get advice.

Our debt specialists can help you make informed decisions, from choosing the best student loan consolidation service provider to filing an application for the Borrower’s Defense to Repayment program.

Heald College has Been Accused Of


federal loan cancellation

US Department of Education investigated Heald College based on the claims that they misrepresented the whole quality of higher education programs. Allegedly, they also encouraged low-income students to take out massive student loans that are in reality may not able to pay them back, and the school should have known they’d never really be able to pay back.

Heald College’s Illegal Marketing Claims

After the investigations of the US Department of Education  also accused  Head College based on some illegal marketing activities that:

  • Fraudulent misrepresentation of the features of the programs. Besides, allegedly, they promised a prospective student that a particular program would prepare them for taking a licensure exam. Moreover, it is said that Heald College grads of the same program who took the exam passed it 100% of the time.
  • The pressure on low-income students to take out massive student loans so that they could attend school. It was on the purpose of those students would never be able to complete their education requirements and pay back loans.

If a similar situation happened to you at Heald College or any other school, then you should apply for student loan debt forgiveness for federal loan cancellation. Before taking any action call Student Loans Resolved and get free assistance about loan procedures.

How to Get Rid of Loan Debt Without Paying for It

federal loan cancellation

Heald College students may use two ways to get federal loan cancellation. The first one is the Borrower’s Defense to Repayment program and the second is the Closed School Loan Discharge program. With the help of these programs, students can eliminate their loans. Each of these programs is simple as well as easy to apply to qualify for which is the great thing about them.

Borrower’s Defense Repayment Program

The program is created for students getting loans as a result of lies, false advertising of the schools. For applying for Borrower Defense to Repayment Program and receiving Heald loan forgiveness you should fill the application and submit it.  After finishing your application process, you will get an answer as to whether your loans are forgiven or not.

If the answer is positive, then you should stop worrying about your loan balance. Even you may get a refund for your already paid cash. The most necessary factor you need to consider about this program and its application method is that that you should show the connection of Heald College’s deceitful activity to your Borrower Defence Claim as the reason which will assist you to get loan forgiveness.

How to Write Borrower Defense Claim

federal loan cancellation

It is an essential part of your application process. Borrower’s Defense Claim is the document that stresses that Heald faculty did one thing illegal to you. As there is so much unlawful stuff that The Heald College was up to, with the help of this claim you can easily prove it to the Department of Education that has resulted in a $1.1 billion lawsuit settlement.

The crucial thing that you need to worry about in your application is to convince the Education Department for loan cancellation. Prove that if Heald College was not part of this fraudulent activity you wouldn’t have taken a debt. Therefore, in another case, you wouldn’t have signed for that loan.

For persuading yourself to get a federal loan cancellation, there is no need to fight and make an uphill battle with the Department of Education even if you are sure that there was a Heald College lawsuit with $1.1 billion amount of money by the parent company of Heald.

However, if you merely observe the judgment against the college, this may not be enough.  Going into detail is essential. Think what exactly the faculty did to you and show the examples.

Borrower Defense Program Application Form

When you fill out the application form don’t be satisfied with only saying that Heald was doing some illegal stuff. Instead of it, be more specific and show that the school did this illicit activity to you with the results. It can be required to provide precise details about what they did or said to you because you need to persuade the person who is going to read your application. Clearly, show that you deserve a federal loan cancellation by the loan service company.

The application form is available online. You should sign it digitally. Upload some scanned pdf on your application form and submit it. As the application process takes a long time in this program,  prepare all the documents beforehand.

When you complete a fillable pdf form print it and sign it. Then send the form to the US Department of Education by email at

How to apply for Closed School Discharges

You need to fill out the official application and submit it to the company that services your loans. If you don’t know who is the corporate company as a loan service, it is the one whom you are paying monthly payments. Loan servicers can be different on following the application process, but in every case, they are legally obliged to tell you instructions on loan cancellation how to proceed.

Eligibility Requirements for Closed School Discharges

federal loan cancellation

Before applying, make sure that you are eligible to apply for the student loan forgiveness by closed school discharge program.

  • The first requirement is that you need to be a student that has to study at Heald College at the time it closed, or have left the school no more than 120 days before its closing day. However, it is not enough with only this requirement, consider the following conditions as well.
  • Second, don’t make transferring all credits out of Heald College to some other school.
  • Third, you can’t have completed all the credits required to graduate from Heald before the school shut down.

If you satisfy these requirements, then you have a chance of getting a federal loan cancellation.

Which Program is Better? Borrower’s Defense or Closed School Discharges?

That depends on your situation that which one is perfectly suitable for you. If you consider the activities of both programs, they offer federal loan cancellation benefits by forgiving and making refunds for your loans. But it may be difficult to choose which one works best for you.

Taking into account that you may qualify for both of them, as a Student Loans Resolved, we recommend you to pursue the Closed School Discharge Program first, and next, Borrower Defense program. Due to the much longer process of application, it is better to apply for Borrower’s Defense program secondly.

Besides, you can get help from other opportunities if you are not eligible for both options. Currently, there are great forgiveness programs such as Public Service Loan Forgiveness, which will cancel your debt after 10 years of service.

Though President-elect Joe Biden plans some changes, this program will still be beneficial. Additionally, one of the best student loan consolidation options is available for federal loans. If you have private loans, you can get the help of refinancing. 


Which Option is Better if I Transfer Credits?

If you want to continue your education in another school, you can transfer your credits. However, keep in mind that, if you decide so, you will not be eligible for Closed School Discharge program. Yet, you can still apply for Borrower’s Defense to Repayment if you faced a fraudulent activity from the school.

What is the Likelihood of Successful Application to Borrower’s Defense to Repayment?

If you have been enrolled in this school between 2010-2014, your chance for debt cancellation is high. The reason is that the school misrepresented job replacement information during this time. However, in general, Joe Biden aims to revive the Borrower’s Defense rule. Hence, in the upcoming years, this option can be more accessible.

What Other Options are Available for My Loans?

There exist several federal forgiveness, discharge, or repayment plans. It is advisable to get familiar with them on our website. Additionally, you can consolidate or refinance your loans. Sure, the best student loan consolidation service is still provided for federal debt. However, you can also find private organizations offering similar services for your private debt.