Education is the key to success in the modern world. If you would look at statistics, you will see that the number of people who apply and study in universities has drastically increased. However, we all know that education in most of the universities in the US is expensive. For this reason, many young enthusiastic students are applying for a student loan in order to pay their education. The student loan system is one of a loan term loan, which students ought to pay after graduating and finding a job. And as the payments of this type of loan last for many years, it accumulates a lot of interests, unless the education center has trouble like Vatterott College closing case. As a result of what these student loans are quite expensive.
Student loan forgiveness program enables students to partially or entirely get rid of the loan payments in some instances. Let’s discuss this issue from the real-life example of Vatterott College’s case.
Vatterott College Closing Values
The value of the average loan was roughly equal to $9500. Moreover, while studying and involving in many courses, a student ought to take more loans. As a result of what, the average student had roughly $40,000 worth loan at the end of their education. And these are the loans students took. There are other types of student loans, such as Parent PLUS, which student loans for parents. Parents are mainly taking loans with fixed rates. In the case of Vatterott College closing, courts cleared these types of loans.
It was considered as licensed and accredited educational centers and were operating successfully until 2017. The issue started under the administration of Obama, who began to organize employment tests. As a result of what forty educational programs of the College could not past. It is the first signal to Vatterott College closing. As of 2018 Department of Education of USA was considering this college accredited. Thus, they were still continuing working, even though other campuses stopped operating. Eventually, one month later, the college lost accreditation, and university shut their operations. Because of the college closing, students who still have active student status were forgiven from university fixed interest loans by the government.
About Vatterott College
Vatterott College is an education center in St. Louis which was established in 1969. The initial purpose of Vatterott College was to create an organization that provides training for different industries. The college specializes in career development training in sectors like medical, culinary, business, law, etc. It is a quite big college with different educational campuses around the west of the United States. Initially, this education center was Urban Technical Center, but in 1989 it changed its name to Vatterott College. After it started to initiate expansionary operations in many regions of the US such as Oklahoma, Dallas, Texas, and other big cities.
Let’s talk mainly about the conditions for getting loan forgiveness. Firstly, if you were enrolled and considered as a student of Vatterott College who continues studies there and college stopped working. As a result of what, you were not able to finish your education and get a degree. If you reclaim your student status from the college 120 or fewer days prior to Vatterott College closing, you will be eligible for getting rid of student loan debt. In order to make the issues more clear let’s discuss the cases when you are not eligible for being part of the loan forgiveness program. Despite Vatterott closing, if you have already finished your education and finalize all your courses.
You would not be eligible for the loan forgiveness program. Even if you did not get your degree yet, but had successfully accomplished your program, you will not be eligible. Secondly, if you withdraw from the courses before the 19th of August, 2018.
How it all started
In the last years of operations, many troubles were occurring so College closing was unavoidable. There were different issues related to the management of the college. Many scandals were appearing in the media, as a result of what college start to lose its reputation. One of the examples which lead to Vatterott College closing is a lawsuit case. Particularly, there was a case of a lawsuit in 2013. Court made the college pay thirteen million dollars to one of its graduates as a fine. The girl who graduated from the university sued the college for misleading and falsification. Girls were aiming to become a nurse, so she talked with a representative of Vatterott College.
The college representatives assured her that she would be able to work as a nurse if she would graduate medical assistance programs in the college. As a result of what, this lady applied to the college and started her education. She did not have enough resources to pay for education, and she applied for a student loan. After studying in the college for sixty weeks, the lady had learned that she would not be able to be a nurse with this degree. She sued the college for misleading and providing wrong information, as a result of what she got thirteen million dollars as compensation for the damage. Media was announcing this accident, and that lead to the destruction of the college’s reputations, which lead to Vatterott closing.
Vatterott College Closing and the Media Coverage
Closing of Vatterott College was shocking news in the media. Government and the representatives of the college were trying to someone regulate the Vatterott College closing operations and make it less deleterious for the students. Administration of the college was trying to find a school which would be ready to transfer currently enrolled student of the Vatterott college. However, this initiative was not successful. Most of the enrolled students were on the list of student loan records with large student loans for studying at Vatterott College. Particularly, 95% of a just-enrolled student studying at the Berkeley Campus of Vatterott College borrowed student loans to pay for their education. Different authorities, like federal banks or private banks, gave these student loans.
Moreover, there are other types of loan forgiveness. For example, one of these types is the teacher loan forgiveness program. If you are willing to work as a teacher in schools for low-income families after graduating, you can decrease your loan amount by roughly 17,000$. The aim of this program is to encourage your specialists to improve the quality of education for low-income families. In addition, this kind of practice helps students to get teaching experience. Another type of student loan forgiveness is a public service loan forgiveness program. It requires you to work for a not-for-profit organizations or state service for being eligible to clear your loan.
But the issue is that you should pay 120 payments of the loan. The remaining will be forgiven by the government officials. There is one less common case which is borrowed defense to repayment. If the college misleads you or provides you with wrong information intentionally, you can be forgiven from a student loan. This case is very similar to the case of the lady who wanted to become a nurse. The mismanagement of the educational centers, which results in stopping operations like Vatterott College closing case, should not affect students. By organizing a student loan forgiveness program, the government tries to get rid of unfair cases towards students.