This post will mainly focus on the third term which is student loan discharge, and as a base, we will use the University of Phoenix loan discharge case. Students are trying their best to get educated and finish their academic life in a high note. To get a high paid and specialized job, you need to study hard. Sometimes in life, there can be struggles such as economic problems that may lead you to work part-time or even stop your studies because of the lack of resources. Before getting University of Phoenix loan discharge case, let’s firstly understand what the student loan is.
What is a Student Loan?
Student loans are one of the ways to get rid of those obstacles and focus on your lessons. There are several kinds of student loans which will be addressed later in this post; however, let’s give a brief explanation about three essential terms that are most of the times confused with each other. Those terms are forgiveness, debt cancellation, and discharge. People are confusing these terms with one another because they are almost the same thing in practice, though in theory there are slight differences between them. First one is loan discharge. Student debt discharge is applied when a student is no more available to pay its loan due to the job that they are working. For instance, you got fired and did not have enough money to pay your bills in this case student loan forgiveness can be addressed to the receiver.
The second term is student loan cancellation. Student loan cancellation is applied when receiving student has some issues with their health, and that is the reason why they could not pay their student loans. For instance, if you have injuries, illness, etc., you are eligible for applying loan cancellation service. The third term is student loan discharge. Student loan discharge is used in cases when there are some problems such as the enclosure of the school in which you are studying right now.
Brief information on The University of Phoenix
University was established in late 1970 and since that time began increasing its quality, however in 21’s century the reputation of the University of Phoenix was damaged because of the claimed fraudulent actions. Allegedly, they used deceitful ads to attract new students, and all of these acts led to the University of Phoenix loan discharge program at the end. The University of Phoenix is considered to be the second-largest university in the United States and it also very popular around the state. By claimed fake ads, thousands of students are still suffering from those student loan debts that they got from the University of Phoenix.
How the University of Phoenix Loan Refund Case Started?
In 2018, the Department of Education began to apply its rules on repayment discharges. They stated that as an executive body they will try to solve those loan repayment issues and will stand for loan borrowing students’ defense regarding this problem. They involved the University of Phoenix because of the controversial claims that they were accused. The lawsuit against the University of Phoenix dealt with many fraudulent activities that indeed broke federal rules and misused the rights of their students. After an investigation, they decided that the university should provide cash refunds and the University of Phoenix loan discharge case became a possibility.
How to use Current Changes in Loan Discharge?
New laws that are started to be imposed by the Department of Education is allowing students to discharge their student loans which were paying since entering the university. The reason for the borrower’s defense is to prevent fraudulent actions that are practiced by some universities. In current law, it is stated that an organization that misuses its services and misinterpreting them while not giving any proper evidence for those claims is obliged to be charged by the federal government and it is student’s right to stop paying their loans.
Claimed inflation of graduation rates by the University of Phoenix is the main reason why the borrower’s defense to repayment applies to them. After claims about the University of Phoenix revealed, students noted that if they were in a position that they are right now, they would not be choosing the University of Phoenix for their higher education degree that is why they need to refund our loans and The University of Phoenix Loan Discharge must happen. The students will get what they need fortunately because of the new law, and even there is a high possibility that alongside discharging your student loan, students will be able even to refund their payments for loans from The University of Phoenix.
How can a Student Support His/Her Claim Regarding Borrower’s Defense?
Before making your claim for borrower’s defense, a student needs to make sure that their intention in applying for the University of Phoenix was due to the reasons for misrepresenting ads and deceitful messages.
Moreover, a student should state that if those claims were not the case, he/she would never reach out to the University of Phoenix and took money for a student loan. You need to make sure that you are clearly stating the facts of how the university misused your will and deceit you. Otherwise, your claim regarding the University of Phoenix loan discharge will not get accepted by the US Department of Education.
When will a Student Know that His/Her Application is Approved or Not?
It is a little bit complicated issue because there is no exact time table for a student to know whether their application is approved or not. It can take several months even years because the Department of Education will analyze your background thus will make a decision about the University of Phoenix loan discharge. The complicity of this issue lies underneath the fact that it is solely based on the decisions of Federal Government and president of the country so if they decide to shut down the process then unfortunately many students’ hopes will eventually be gone.
However, try to apply for the program if you are one of those suffering students because even if the federal government shut down the process if your application is submitted before that time, then there is a high possibility that you will get your loan discharge.
Is it Possible for a Student to Stop Paying for Loans after the Application Process?
The answer to this frequently asked question is yes. However, it is better to keep making payments. The student should keep paying his/her loans even after applying for the University of Phoenix loan discharge program because they cannot know whether their applications will be approved by the Department of Education or not. That is why it is better to keep paying student loans and not allow interest payments to accumulate. If a student rejects to pay its loan before getting any official acceptance letter then, unfortunately, they might not be able to repay the huge interest payments in case of rejection. If you are one of those students that suffer from student loan issue or you want to get it, then this post will answer most of the questions that bother you while giving examples from the University of Phoenix case.
