American Commercial College Loan forgiveness is possible for defrauded students of the university. Borrower defense claims allow student loan borrowers to apply for student loan forgiveness if they can prove their college or university defrauded them while enrolled.
A pending settlement agreement in a class action lawsuit means students from 155 colleges and universities, mostly for-profit institutions, could soon qualify for student loan forgiveness.
The Department of Education (ED) reached a settlement agreement with Harvard’s Project on Predatory Student Lending in late June, presumably ending a three-year class action lawsuit. The agreement, which could erase more than $6 billion of student loan debt, was filed late Wednesday as part of a proposed class-action settlement.
The status of that lawsuit and settlement is still pending. Groups representing some of the institutions listed in Sweet v. Cardona filed motions to intervene in the case in mid-July, claiming that the settlement could negatively harm the schools’ reputation and may disadvantage them in future borrower defense claims.
American Commercial College Student Loan Forgiveness and repayment options
The Federal Government has several programs to help you with student loan debt. One is the Closed School Loan Discharge Program, and the other is called Borrower’s Defense To Repayment (BDAR). These are two very unique federal programs that can get your American Commercial College student loans forgiven.
American Commercial College was recently closed by its parent company, Career Education Corporation. If you attended American Commercial College before it was closed, you may be eligible for a discharge on your student loans through the Closed School Loan Discharge Program or BDAR.
Both of these programs are designed for students who were directly affected by the closure, which means that you either withdrew from American Commercial College during a time when it was closing or failed to complete your program due to its close.
If you believe that American Commercial College closure affected your ability to pay off your student loans, then it is worth researching if either of these programs is right for you.
The Closed School Loan Discharge Program will discharge 100% of the loan amount, while BDAR can forgive up to 100% of a Federal Direct Loan, depending on the school’s closure date.
Closed School Loan Discharge Program:
The Closed School Loan Discharge program is designed to help students who could not finish their education because their school closed. If you withdrew from American Commercial College before it closed or failed to complete your program due to the closure, then you may be eligible for a discharge on your student loans.
Borrower’s Defense To Repayment (BDAR)
The Borrower’s Defense to Repayment is designed for students that feel they were defrauded by their school or misled into taking out student loans that may have too high of a price tag. The Department of Education will review your case to see if you qualify for a discharge.
It is important to note that you must apply for one of these programs to receive any benefits. Please don’t wait until it’s too late; contact the U.S. Department of Education as soon as possible to start the process.
Public Service Loan Forgiveness
The Public Service Loan Forgiveness (PSLF) program is a federal program that forgives the remaining balance on your student loans if you work for a qualifying employer. To qualify, you must make 120 monthly payments on your loans while working full-time for a qualifying employer.
Qualifying employers include government organizations, non-profit organizations, and certain public service jobs.
If you’re interested in the PSLF program, you can contact your loan servicer to see if you’re eligible.
Income-Driven Repayment Plans
This group of repayment plans bases your monthly payment amount on your income and family size. There are four different income-driven plans:
- The Income-Based Repayment (IBR) plan.
- The Pay As You Earn (PAYE) plan.
- The Revised Pay As You Earn (REPAYE) plan.
- The Income Contingent Repayment (ICR) plan.
Your monthly payment amount will be lower than it would be on a standard repayment plan, and any remaining balance on your loan will be forgiven after 20 or 25 years (depending on the plan).
To apply for an income-driven repayment plan, you’ll need to contact your loan servicer.
TPD Discharge (Total and Permanent Disability Discharge)
This program forgives your student loans if you’re totally and permanently disabled. To qualify, you’ll need to submit documentation from a doctor proving that your disability is total and permanent.
If you are approved for a TPD discharge, your loans will be forgiven, and you’ll no longer be required to make payments.
Student Loan Consolidation
The last option is student loan consolidation. This option combines all of your federal student loans into a single loan with just one monthly bill.
If you have multiple federal student loans, you can consolidate them into one loan. This can simplify your monthly payments and give you a longer period to repay your loan.
These are just a few loan forgiveness options available to American Commercial College students.
American Commercial College lawsuit & Accreditation
It was recently announced that American Commercial College has lost its accreditation, and is being sued for $500 million. This lawsuit alleges that the college misled its students about their job prospects after graduation.
If you attended American Commercial College and feel left in the dark after its closure, this may be something you want to look into.
There are two things you can do if you believe Career Education Corporation misled their students about the job prospects of post-graduate employment: file a Borrower’s Defense To Repayment (BDAR) claim or apply for a Closed School Loan Discharge through the U.S Department of Education.
Both of these programs can help you discharge your student loans, so it is important to do your research and see if either of them may be right for you.
American Commercial College closing
If you are a student of American Commercial College, it is important to be aware that the school is closing. This means that if you are currently enrolled in a program, you will not finish your education at American Commercial College.
However, if you withdrew from American Commercial College before it closed or failed to complete your program due to the closure date, then there are a couple of programs that can help you get student loan forgiveness.
Fraudulent Activity of American Commercial College
If you are a student of American Commercial College, it is important to be aware that the school may have been involved in fraudulent activity. This means that if you are currently enrolled in a program, you will not finish your education at American Commercial College.
Need Help with student loans
If you’re having difficulty keeping up with your student loan payments or want to learn more about your alternatives and student loan forgiveness options, don’t hesitate to contact us.
Our student loan advisors can answer any of your questions and help you find the best solution for your unique situation.
You can also check out our website for more information on student loans and repayment options. We want to make sure that you have all the information you need to make the best decision for your future.