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Art Institute

The Department of Justice charged Education Management Corp, which also happens to be the former owner of the Art Institutes, a total of $11 billion for federal funding fraud. To prevent further liability and legal actions from various stakeholders, Education Management Corp consented to settle $95 million. The Art Institutes are not the only higher education institutions caught in the net of these lawsuits. Between 2016 and 2019, about 50 chain and individual colleges were made to forcefully shutdown. A good example is the case of ITT Technical Institute, Brightwood Career Institute, and Le Cordon Bleu Colleges. 

Like the Art Institute, the closure of these institutes means enrolled students who took student loans are eligible for loan forgiveness. Keep in mind that different eligibility and requirements will apply to different schools and students. Students of the Art Institute, who were affected by the fraudulent dealings and closure of Education Management Corp schools can find vital information concerning art institute loan forgiveness on this page. 

Type of Art Institute Loan Forgiveness

There is a glimmer of hope for students whose present and future financial conditions were affected by the recent closure of the Art Institute colleges. A large portion of students are getting loans forgiven under the Art Institute loan forgiveness programs. Students caught in the unfortunate incident of Educational Management Corporation’s demise can apply for loan forgiveness in two ways:

Closed School Student Loan Discharge

The first student loan forgiveness program (The Closed program) is operational under the federal government’s long-standing intervention in the case of students from colleges that were closed down due to one reason or the other. Therefore, if your college closed down before you get the chance to finish your education, you may be eligible for this discharge program. Under this program, you must have left the school no more than 120 days before its closure, or you were still a student at the art institute before its close down. 

These are the two general eligibility criteria for students under this program. Former students can obtain the art institute loan forgiveness under these provisions.

Who Is Eligible?

There is a lot of information online about the Closed Program. Students can, at times feel overwhelmed with an avalanche of information. Hence, we have simplified the information so you know what to look out for and determine if you can benefit from the art institute loan forgiveness program. To make the best of this information, please take your time to review it before carefully applying for the program. 

As explained earlier, students get loans that they took during your study at The Art Institute written off if you meet two essential criteria. 

  • If you happen to be a student at The Art Institute before its closure.
  • If you completed or left the school less than 120 days before the day it closed. 

Apart from these two, there are two other minor requirements that you need to meet before you apply for an art institute loan forgiveness program. These are :

  1. Students currently enrolled in another institution after the transfer of their credit do not qualify
  2. Students who have completed their coursework prior to the closure of the school but are this Discharge program. 

With these three requirements in mind, you can confidently determine your full eligibility if you happen to qualify for the program. We strongly encourage you to apply at the earliest and benefit from the loan forgiveness. Keep reading to know how to apply for forgiveness.

On the other hand, this article is going to show the degree to which borrowers can become advantaged by getting familiar with the situation. Also, it could develop the necessary skills not to get stuck in the position for a while. However, it is also vital to point out that knowing what ongoing trends are within the framework. Therefore, let’s dive into the details of how Ashford University student loan forgiveness program could determine your further developments in career path. Also, it could improve them in a very positive way. On the other hand, analyzing through what is essential in terms of realizing how far the conditions could get you into trouble. Hence, while starting to think about Ashford university student loan forgiveness, you need to get informed on how things are going to emerge.

However, student loans stand as a significant problem in the way. Once you solve the obstacle, then building up career turns out to be more accessible. In this way, Ashford university student loan forgiveness comes forward as an incentive for borrowers to solve the problems. At the same time, they should be aware of what they are doing.

How to Apply for the Closed School Discharge

To apply for the art institute loan forgiveness through the discharge program, you need to get the necessary documents and information ready and visit the federal student loan aid website. 

NOTE: The link takes you to the official government website and is reliable. Also, remember to watch out for scams and fraudulent websites. Avoid these websites and apply at the link above. 

Below Are the Steps to Apply

Step 1
Download the application from the link.
Step 2
Complete it by providing the right information for all the different fields. 
Step 3
Submit the filled form to your loan servicer. 
Step 4 
In case you don’t know who your loan servicer is, it is the same company that you make your monthly student loan payments to. 
Remember, every student loan servicer may have their procedures in place for working on your Closed School Discharge application. Therefore remember to contact them for more information and clarification on the matter. For students who do not qualify for art institute loan forgiveness under this program, consider the Borrower’s Defense Against Repayment.  You can find the details below. 

Borrower’s Defense Against Repayment

The Borrower’s Defense Against Repayment is a program introduced by the United States federal government to help student borrowers who obtained loans to complete their education at schools that later acted in any fraudulent or dishonest way. The program exists as an effort from the government to help such students continue their education. 

In the case of the Art Institute, it’s proven beyond reasonable doubt and proved in court that Educational Management Corporation had committed several fraudulent acts during the operation of its Art Institutes. Under the circumstances, any individual who owes student loans from the Art Institutes becomes automatically eligible to receive art institute loan forgiveness under the borrower’s Defense program. Under this program, you can obtain total loan discharge. 

Some illegal activities charged by DOJ include fraudulent recruiting and unlawful marketing. As a result, a lot of students from different walks of life felt the impact of these activities. Thankfully, a lot of these students have already received compensation through loan forgiveness under the Borrower’s Defense Against Repayment Discharge

So what are you waiting for?

If you meet the eligibility criteria, make sure you get the compensation you deserve from the forgiveness program. You can be confident about the legitimacy of the Borrower’s Defense program. We can guarantee with all certainty that this program is legit!
For many students currently enrolled in other institutions and trying to complete their education, this is the best option. Especially under their current circumstances that render them unfit for the Closed program. If you decide to move forward with an application for the Borrower’s Defense Against Repayment, then you stand an excellent chance to write off your debts and benefit from the art institute loan forgiveness.
Before you apply, there is some crucial information you need to consider.

Eligibility Criteria

Students are eligible to benefit from student forgiveness if they can successfully do one vital thing. As a student must successfully connect their Borrower’s Defense Claim to the lawsuit that brought down the Art Institute and its fraudulent activities. Please find below some of the necessary details you need to add to your application. 

  • Monetary settlement figures
  • Links to reputable sources
  • Any other details you can provide to help build a strong case against the school. 

Only after including all the necessary information, should you submit your application. Provided your application is successful, you can enjoy the art institute loan forgiveness, and get refunds for all your previous loan repayments. Since the benefits of this program are so significant, you don’t want to do anything that disqualifies you. Therefore, remember to pay close attention to the details and make sure to enter all the information required on the application form correctly. The application process isn’t challenging, but as mentioned earlier, you must complete it with extreme care. Please refer to the section below for details on the application procedure.

Filing a Claim for the Borrower’s Defense

To successfully file a claim for the Borrower’s Defense Claim, you need to point out the facts that the school violated the law in its dealing with you, and you enrolled in the institute as a result of illegal marketing tactics employed by the school. The writing of the claim has to be thorough, living no stone unturned. In other words, it needs to be clear to whoever will process your claim that you would have never taken out a loan from the Art Institute to complete a course if you would have known otherwise. 

Remember to emphasize the fact that you were misled by the Art Institute in the matter of the loan. This is easy to prove because the Art Institute agreed to make about $200 million available to students. For those who don’t know the full details or are not sure about the details of the Art Institutes dealings that led to its recent closure, please read the section below to find all the information you need to build a solid case. 

The Art Institutes

The Art Institutes was a subsidiary owned by the Educational Management Corporation. It was the second-largest for-profit college in the whole country. Due to illegal practices, the art institutes lawsuit led to further scrutiny of the Educational Management Corporation. In this lawsuit, the corporation faced charges for breaking several consumer protection laws. 

This led to a settlement in 2015. In the wake of this settlement, Educational Management Corp agreed to pay a total of $95.5 million for fraudulent recruitment strategies and forgive student loan debts amounting to about $103 million.

As of today, the Educational Management Corporation has failed to admit any wrongdoing even after the Art Institutes lawsuit wen against it. Nevertheless, they have consented to the payment of 200 million dollars. This is good enough proof to use for a Borrower’s Defense argument. Though this might be the case, you may be ready to do more than point to the Art Institutes’ wrongdoings. The case lies in outlining how these actions affected you personally. This is the best way to guarantee loan forgiveness from the Art Institution.

However, we understand some people may still require some assistance to pinpoint some illegal activities of the Art Institutes. 

The Art Institutes Marketing Activities

According to the complaint filed in the Supreme Court of New York County, here are some alleged practices of the school that might help increase your eligibility for the art institute loan forgiveness. 

  • Misled students concerning the benefits of degrees obtained through education at their schools. 
  • Deployed high-pressure sales tactics to get students who would have otherwise chosen a different school
  • Made false claims concerning the accreditations of certain programs 
  • Misrepresented job placement and graduation rates. 

Questions to Ask Yourself

  • Do you believe you were a victim based on any of the above practices? 
  • Have you been at the receiving end of any of these marketing tactics? 
  • Do you think the graduation rate from the Art Institutes misled you?

If you answer yes to any of these questions, you can plainly state it as a strong base for filing for a claim under the Borrowers Defense Program. For further clarification on the misconducts of the Art Institutes, be sure to read our post on the Art Institute lawsuits in 2019. By now, you must have made up your mind as to whether to apply or not. If yes, please on to find how to file your Borrower’s Defense Claim. 

Where to File the Borrower’s Defense Claim

For former students of the Art Institutes who want to apply for the art institute loan forgiveness under the Borrower’s Defense Against Repayment Program, please head to the official government website and complete an online application form to begin the process. 

Note: Your claim will not be processed if you file through any other means apart from the official government website. There are student loan scams all over the internet now, and you don’t want to be a victim. Therefore, it is prudent to proceed with caution anytime you need to fill out an electronic form that requires personal information, especially in cases that involve financial details.

Check the Status of an Application

As with many state affairs, applications for the Borrower’s Defense Claim are not processed promptly. The timeframe for processing applications vary. However, an applicant can wait an entire year for the application to be processed. We advise you to exercise patience since the line must have grown even longer in recent times. Seeing as many more students intend to benefit from the Art Institutes loan forgiveness program.

This is a simple heads up to encourage students who might get discouraged if they do not hear from the Department of Education. Hence, it is advisable not to waste any further time. Apply right away for your Art Institute loan forgiveness program and have your student loan written off.

Forecasted Changes to the Art Institutes Loan Forgiveness Programs

According to the Secretary of Education, Betsy DeVos, the Borrower’s Defense program might be removed from the U.S educational system entirely. Therefore, you must move quickly, take advantage of the Art Institute lawsuit, and apply at the earliest. Until they sign the papers to get rid of the program entirely, students of the Art Institute can still benefit from loan forgiveness through the Borrower’s Defense Against Repayment. 

FAQ

Which Art Institute Loan Forgiveness Programs are Available?

If you were influenced by the Art Institutes’ closure, you could apply to the Closed School Discharge program. Also, students facing misconduct by the school, such as lying about the job replacement rates or the true cost of the education, can apply for the Borrowers’ Defense program. This option helps students that made the wrong decision of enrollment due to mismanagement. If a student can prove the case, he/she can get rid of the debt fully or partially. 

Which Cases are Suitable to Borrowers’ Defense?

Students who experienced misconduct by the school, similar to those mentioned in the Art Institute Lawsuit, can easily apply to the Borrowers’ Defense program. In more detail, this program protects students who were victims of education-related wrongdoing. If a school lied about the cost of the loan, employment rates, credit transfers, or education quality, you could apply Borrowers’ Defense to get debt relief. However, personal matters such as harassment or physical injury might not make the borrower eligible for this benefit. 

What if I am not Eligible for Forgiveness?

If you do not qualify for any Art Institute Student Loan Forgiveness program, you can still get some financial assistance for your debt. For instance, consolidation or refinancing programs offer interest reduction advantage, while repayment plans can streamline the debt repayment process. You can also contact Student Loans Resolved experts to get recommendations for your financial challenges. 

What is the Likelihood of Receiving Approval for Borrowers’ Defense?

The chance to get debt reduction through Art Institute’s Borrowers’ Defense to Repayment can be high depending on how you prove the case. As the institute faced allegations before, you can prove the wrongdoing relatively easily. However, you still need to collect all documents and proofs and explain why you think you are eligible in a clear manner to ensure approval. For any assistance regarding this program, it is also possible to get third-party help from experts.