3 Times College Closings Can Affect Student Loan Repayments

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Education loan
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3 Times College Closings Can Affect Student Loan
Repayments
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• By now, you've probably heard the news about the
  closing and recent bankruptcy filing announcement
  of Corinthian Colleges, one of the largest
  for-profit higher education organizations in the
  U.S. At its peak, the organization enrolled
  almost 80,000 students per year.
• In April, the organization announced the
  immediate closing of its remaining 26 campuses,
  affecting nearly 16,000 students.

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• The coverage of these events, especially those
  that focused on the affected students' loan
  debts, left many consumers confused about their
  responsibilities if their college should close.
• While the Corinthian situation is unique, the
  majority of the time you can expect to encounter
  one of the the following scenarios when it comes
  to student loans and college closings.

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• My School Closed While I Was Attending
• While most school closings are planned months, if
  not years, in advance, there have been situations
  where schools have closed suddenly with little if
  any notice to affected students.
• If you are attending or have recently attended a
  school that closes, you may be eligible to have
  your federal student loans discharged.
• To be eligible for this discharge, a borrower
  must meet all of the following criteria.
• You must have been enrolled in the school within
  120 days of the school closing

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• If you weren't enrolled at the school within that
  120-day window, or did complete the course work
  required to receive the credential, even if you
  didn't receive the actual diploma, then in most
  cases you are still required to repay your
  student loans.

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• What About Private Loans?
• Private loans are tricky. There are generally no
  discharge options available, even in closed
  school situations.
• The Corinthian case is unique in that part of
  what the organization was cited for was the
  alleged predatory private loans the schools were
  offering students.

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• In an unprecedented event, the Consumer Financial
  Protection Bureau announced a settlement offer
  that would result in at least a 40 percent
  reduction in debt for these Education loan
  borrowers.
• There has been no discussion of any type of
  relief being provided for those who took private
  loans from other sources.
• Source http//bit.ly/1ASxaqZ

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