Art Institute - Student Loan Resolved

Art Institute

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:

Student loans may at-first seem like an only alternative, can bring a lot of challenges down the road. Currently, 70% of students who took loans to attend college are struggling to pay the debt back. With high-interest rates and long periods of repayment, this has a debilitating effect on the quality of life of these people. However, this situation can change with the effective use of consolidation programs. Borrowers can apply for government consolidation or other private SoFi student loan consolidation. By combining the loans into one, monitoring payments is more manageable. In the best case, debtors can even get a reduction in monthly payments. However, they should first decide which program to apply for. Each of them provides various advantages and disadvantages. Their terms differ considerably. Hence, in this article, I want to show you the differences between Direct and Private SoFi Consolidation and how borrowers can make informed decisions. While all differences matter, the truth is that your choice will heavily depend on the type of your loans. Direct consolidation is only for joining federal loans. If you want to combine private loans, too, you cannot apply for that program. You need to decide whether private SoFi student loan consolidation offers the best option for you or perhaps other private lenders.  Loan Types of SoFi Student loan Consolidation and Direct Consolidation One of the most critical differences in the types of loans that those programs cover. Direct consolidation includes many forms of federal loans. Some examples can be Subsidized Federal Stafford loans, Federal Perkins, or Nurse Faculty loans. However, this program only joins federal loans. Direct consolidation is not possible for debt made for private education.  While you can not consolidate your private loans in this way, it sometimes plays a crucial role. For some programs, when officials estimate the length of the repayment period, they use the total amount of debt- federal and private- as an influential factor. Besides, you should be aware of the PLUS loan application. In practice, a Direct PLUS loan is eligible for the Direct Consolidation plan. However, if parents made this debt to pay for the education of dependent students, it can not be consolidated with federal student loan debt that students themselves got. On the other hand, SoFi student loan consolidation covers a much broader range of loans. It puts no restriction to consolidation; whether private or federal, you can enjoy lower interest rates by combining them. Plus, this online company also supports the refinancing of Parent Plus loans. Eligibility In general, students only become eligible for Direct Consolidation after they graduate, leave college, or get less than half-time education. In terms of timing of consolidation, SoFi indicates that the earlier you refinance, the better. The platform supports early application by honoring the first six months of grace period of loan graduates refinance. Direct Consolidation Now let’s look at eligibility criteria for these two programs individually. For the Direct Consolidation plan, there exist a few requirements. First, you become eligible if you started repayment, or you are in a grace period. If a graduate has a defaulted debt, there are some other requirements to satisfy. Before getting consolidation, he/she should make three successful, consecutive monthly payments. Besides, he/she should agree to repay consolidation bu Income-based, Pay As You Earn, Revised Pay As You Earn, or Income-contingent repayment plans.  Another eligibility criteria are about the garnishment of wages. This term indicates a court rule which orders your employer to keep a portion of your salary separately for paying the loan server. If you face such an issue, Direct Consolidation is only possible after the order expires. To sum up, a desire to repay the loan by combining all debts into one is enough for debtors to get consolidation unless they face default or garnishment of wages.  SoFi Student Loan Consolidation For SoFi student loan consolidation, the number of requirements, and the burden of documentation increase. First, debtors should be at least 18 years old to enter into a binding contract with this online platform. Second, they should be either US citizens, permanent residents, or visa holders. If you belong to the second category, you need to show your Green (residency) Card, which has validity (from issuance to expiry) of a minimum of two years. If you are a visa holder, you must indicate a valid visa and proof of it. Evidence can be approved application to Green Card or receipt of I-485, which is an application for the application to register permanent residence. Third, borrowers should live in states where SoFi has the authorization to lend- 50 states plus the District of Columbia.  The debtor needs to have employment, adequate income from other sources, or at least an offer for a job, which starts within the next 90 days.  Graduation with at least an associates’ degree from Title IV school that processes federal loans Only educational loan is eligible for refinancing. Bar or residency loans cannot be consolidated. While it is not on the eligibility list, you should also have a good credit score. Social Finance is a private company, and it would not risk serving people who have a poor credit history. They also utilize this factor for decision making of which loans to refinance. If you meet all the requirements, the SoFi student loan consolidation program will cover loans from $5000 to $100000. However, this rate also can be higher, depending on your state’s legal requirements. For Arizona, Massachusetts, Kentucky, or New Hampshire, the minimum amount is higher.  Interest Rates There are also differences in the interest rate you will get after consolidation, depending on which program you choose. Plus, repayment methods can vary. Again, let’s first look at Direct Consolidation. This program has a fixed interest for the entire life of the loan. Officials calculate this interest by finding the weighted average of interests of loans you want to combine. Then, they round the number to the nearest one-eighth of a percent. Also, there does not exist any cap for the interest rate.  In the case of SoFi student loan consolidation, you have a chance for better rates. The reason is that SoFi operates online. Unlike local banks or credit unions, this platform has fewer costs. In this way, they can provide lower rate refinancing. The decision on the exact interest rate is not a simple weighted average, as in the case of Direct Consolidation. Instead, it depends heavily on the credit score and income level of the debtor. While the direct method has a fixed rate payment, you can choose to pay either with a fixed or variable interest rate with SoFi. Usually, the interest rate for fixed-loan is between 5.74-14.24%, and for variable-rate, it is from 4.78% to 10.88% Repayment Plans Repayment of Direct Consolidation usually starts during the 60 days after the loans combined. In general, your loan servicer notices you about the first due date for repayment. If you have a debt that is in the grace period, you can opt for delaying combining it until the end of the period. Choosing this option means that you do not start repayment until the grace period ends. Also, borrowers can select their repayment method- including an income-based loan payment- among several options available for Direct Consolidation. If you select SoFi student loan consolidation, the repayment is different. The company sends funds to your current loan servicer after signing the final documents, and a three day rescission period ends. Then again, 7-10 days later, borrowers will receive an email with instructions to repay. They should open an online account and follow the repayment plan that SoFi offered. Usually, SoFi creates this repayment method based on income, loan amount, and interest rate. You can choose from three, five, or seven-year repayment terms. Besides, they also try to make payments error-free. There is an automatic deduction function called AutoPay. If you use Autopay, then the loan servicer will deduct the amount from your bank account automatically each month. In addition to being convenient, this system allows you to get a 0.25% discount on the interest rate if you authorize automatization.  Application  Direct consolidation is a federal program. Hence, debtors apply for the program usually through Studentloans.gov. Two ways of application are possible; online and by mail. The borrowers can complete the online form and submit through the website. Alternatively, they can download, print, and fill the application and send it by mail for submission. After submitting, a servicer for student loan consolidation will perform actions to combine your loans. This service is also a person whom you contact if you have any concerns or questions. You should be careful about keeping loan payments. Unless servicer informs you that consolidation is completed, you need to make on-time payments to lenders.  For applying SoFi student loan consolidation, it is better first to check your credit score. You can do it by requesting your credit scores. See if you can meet the minimum score required for eligibility. Then you can move to the next step. After you input your name, birth date, address, phone number, and social security number, SoFi officials will immediately inform you whether your application is approved or not. But this approval is an initial one and is the result of a soft check of your credit score.  Next, they will perform an in-depth analysis of your request. You need to share employment, banking information, as well as loan amount and income level. In this stage, they will calculate the initial interest rate, which is tentative. The exact percentage will depend on SoFi’s decisions after they check your financial history and current standing. Also, be ready to upload documents to prove income, citizenship, or bank accounts. Lastly, you need to e-sign the agreement to get funds into your account. If you agree to AutoPay in this step, you will get a 0.25% discount for your interest rate. Pros and Cons  While both programs help debtors to decrease their loan burden, they bring some drawbacks, too. It is essential to know the advantages and disadvantages of SoFi student loan consolidation and Direct Consolidation, before making any decision on which one to choose. Direct Consolidation The advantage of this program is that it offers an excellent simplicity for loan repayment. By combining many federal loan repayments into one, it is easier to keep track of them. Plus, it can also decrease your monthly payment amount. The reason is that the program will give you a chance to pay the whole amount for extended periods like 30 years. Another benefit is for people who wish to combine loans other than William D. Ford Federal Direct loans. In this case, they can get access to extra repayment options such as income-driven and Public Service Loan Forgiveness.  Some people mention that the switch to a fixed interest rate is a pro for this program. However, we cannot make this claim for sure. If later in the future, the interest rates rise, having a fixed one can be advantageous. But, if interest rates fall, you will pay more than the market interest rates, which is not a desired situation at all. Hence, the switch to a fixed percentage has an ambiguous result for debtors. The disadvantages of the program also exist. As mentioned before, the repayment period is longer. While this feature decreases monthly payments, it can lead to a higher total amount of payments at the end of the period. Another point is that the outstanding interests of your current loan become a part of the original balance after the consolidation. Hence, interest can accrue on a higher balance. In this case, you will be better off if you do not consolidate loans. Consolidation also cost you losing some benefits such as interest rate discounts or some other loan cancellation. If you pay an income-driven repayment plan or PSLF, consolidating loans will lead to a loss of credits of payments for those programs.  SoFi Refinancing SoFi student loan consolidation also brings some benefits and drawbacks to borrowers. The main advantage is that SoFi allows combining private loans, which Direct Consolidation does not offer. Plus, it is easy to apply. After all, SoFi is an online company. You can apply for consolidation wherever and whenever you want. Other than ease of the process, you can get a 0.25% discount to your interest. As mentioned before, it is possible if you agree that they will deduct monthly payments from your bank account automatically. In addition, you can contact them seven days a week to direct your questions. Plus, debtors can enjoy some membership benefits, such as getting the help of a financial coach without any extra cost.  The drawback of the program can be the documentation process. For direct loans, the desire for consolidation covers the majority of eligibility criteria. But for SoFi refinancing, debtors should prove their eligibility through a collection of numerous documents, which can also be time-consuming. Other than that, if you apply this plan, you will lose many protections that federal loans offer to you. The reason is straightforward. SoFi is a private company. To maintain your federal benefits such as potential student loan forgiveness, you need to apply for a governmental program.  Lastly, people mostly complain about interest rates of SoFi student loan consolidation. It is not that they offer a higher percentage; it is the process itself that complicates the process. As I said before, you will get an initial rate after a soft credit check. However, they will make an in-depth analysis and decide the exact rate after you bring more documents. The problem is that the exact percentage can be much different than the initially proposed one. Therefore, the process can be a waste of time. Conclusion  Combining multiple loans into a single one makes the repayment process simpler. Tracking the repayment is straightforward. Plus, if you can lower the interest by consolidation, you will enjoy the decreased burden of student debt. Consolidation is possible through governmental bodies and many other private companies like SoFi. The most significant difference between these two types of plans is that SoFi student loan consolidation allows consolidating private loans, while Direct (Federal) Consolidation does not. However, there are still some differences in terms of eligibility, interest rate, repayment terms, and application method. Additionally, they provide both pros and cons. Before deciding which one to choose, it is better to know which benefits they will bring you and how drawbacks will affect your current standing. If you decide to opt for a governmental program, Student Loans Resolved can also guide you through the process for a smooth debtor experience.

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

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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. 

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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.