Marinello Schools of Beauty operates 56 cosmetology schools across five states, including two locations here in San Diego (Miramar and El Cajon). On February 4, 2016 Marinello suddenly shut down all of its locations leaving 4,300 students unable to continue their education and 800 employees out of work.
The sudden shut down came after the US Department of Education Denied Recertification of Marinello’s Eligibility to Participate in Federal Student Aid Programs. According to the Department of Education website, Marinello was notified on February 1, 2016 that its participation would end effective February 29, 2016. Three days after Marinello received this notification, it shut down all locations.
Marinello was denied recertification due to serious violations including “knowingly requesting federal aid for student based on invalid high school diplomas, under-awarding Title IV aid to student, charging students for excessive overtime, and engaging in other acts of misrepresentation.” For students who were enrolled at Marinello, or withdrew within 120 days of its closure, there are two primary options available to addressing their Outstanding Federal Student Loans: apply for a closed school loan discharge or transfer their credits to another comparable institution.
According to the Department of Education website, a closed school loan discharge “is a 100% discharge of the Federal Direct Loans, Federal Family Education Loan (FFEL) Program loans, or Federal Perkins Loans you took out to attend the closed school.” To apply to a Closed School Discharge of your Federal Student Loan, you must complete a detailed application and return it to your loan servicer. Students who previously graduated from Marinello and were not enrolled at the time of its closure are not eligible for a closed school discharge of their loans.
San Diego Student Loan Lawyer specializes in student loan debt resolution and our attorneys are available to discuss options and provide valuable assistance to address this serious student loan problem.