There can be nothing worse for a student than to have the whole school close down from underneath you, leaving you lost, dazed and confused. Now, it looks like 20,000 students of Brightwood College are locked out of school!
You can apply to have your Federal Student Loans taken out while you were attending the closed school administratively discharged. What does that mean? It means that the program offered by the U.S. Department of Education, your Direct Student Loan Lender, forgives the loan. The Dept. of Ed. lent you the funds to attend the close school, and their policy is such that if the school closes, it has the option to forgive the loan. However it is not automatic, and you have to qualify.
The Arkansas Democrat Gazette recently reported that President Trump's administration is granting only partial loan forgiveness to most students approved for help because of fraud by for-profit colleges.
The new administration has adopted a different approach to student loan forgiveness for students defrauded by for-profit colleges. President Trump’s Education Secretary, Betsy DeVos, has rolled out a new policy of “Tiered Relief” in which defrauded students are compensated based on their earnings following completion of college programs.
The Consumer Financial Protection Bureau is accusing the Department of Education of getting in the way of its lawsuit against a student loan giant. Last year, the Consumer Financial Protection Bureau filed a lawsuit against student loan giant, Navient. That lawsuit alleged the student loan company caused borrowers to struggle unnecessarily by steering them towards repayment plans that weren’t in their best interests and ignoring borrowers’ instructions about how their payments should be allocated. Last week, in a letter submitted to the judge overseeing the case, the CFPB claims that Navient isn’t producing documents requested as part of the case that are “essential to identifying the universe of harmed consumers,” because they don’t have permission from the Department of Education.
California Attorney General Xavier Becerra filed a lawsuit accusing student loan processor Navient Corp. of harming consumers by failing to properly service the debts. Navient, one of the nation’s largest student loan servicers, services about $300 billion in federal and private student loans for 12 million borrowers, about 1.5 million of whom live in California.
Nothing can be more frustrating to a person who needs to make a payment on their student loans than their inability to work with the student loan servicers. (FedLoan, Navient, Great Lakes, NelNet) More often than not, the servicers want far more per month than they can afford. That is when seeking the advice of D.J. Rausa, San Diego Student Loan Lawyer, becomes so necessary.
When a client wishes to pay their student loans, I help them arrive at a monthly payment they can afford. Often times I assist them in getting into the best available repayment plan, such as an Income Driven Repayment Plan, IDR.