Are you a former student of Career Point College who took out a student loan to finance your education? If so, you may be wondering about the loan forgiveness and repayment options are available to you.
When a school closure leaves students in debt and scrambling for new plans, loan forgiveness, and repayment options can be crucial. For students of Career Point College, this is especially true. Career Point College announced on January 16th that it would be closing its doors, leaving students with unfinished degrees and mountains of debt.
Fortunately, there are a few options available to students struggling to make ends meet after the closure of their school.
In this article, we’ll discuss the loan forgiveness and repayment options available to students of Career point college. We’ll also provide some advice on choosing the best option for you.
What is Career Point College?
Career Point College is a 2-year for-profit college that was founded in 2001. The college offers associate’s and bachelor’s degrees in various fields, including business, information technology, and health sciences.
The school is well famous for its vocational nursing program, which started in 2009 and was one of the longest-running programs of its kind in Texas.
Career Point College Loan Forgiveness and Repayment Options.
The Department of Education offers a few different loan forgiveness and repayment options for students who have been affected by the closure of their school.
The Closed School Loan Discharge.
The Closed School Loan Discharge is an option that is available to students who have been unable to complete their degree program because their school has closed. This discharge will discharge the federal student loans you took out to attend the closed school.
To be eligible for the Closed School Loan Discharge, you must meet the following requirements:
- You were enrolled in the school when it closed or within 120 days of the school closure.
- You were not able to complete your degree because the school closed.
The discharge will be applied to your federal student loans, including Direct Loans, Perkins Loans, and Federal Family Education Loans (FFELs).
Public Service Loan Forgiveness.
The Public Service Loan Forgiveness Program is a program that offers loan forgiveness for students who work in public service jobs. To be eligible for loan forgiveness, you must have made 120 qualifying payments on your Direct Loans. You can learn more about the program on the Federal Student Aid website.
Income-Based Repayment Plans.
If you are struggling to make your monthly payments, you may want to consider an income-based repayment plan. Under these plans, your monthly payment will be based on your income and family size. There are four different income-based repayment plans:
- The Income-Based Repayment Plan (IBR)
- The Pay As You Earn Repayment Plan (PAYE)
- The Revised Pay As You Earn Repayment Plan (REPAYE)
- The Income Contingent Repayment Plan (ICR)
You can learn more about these plans on the Federal Student Aid website.
Borrower Defense to Repayment.
The Borrower Defense to Repayment program is a program that allows borrowers to have their loans forgiven if they can prove that their school deceived them or engaged in fraudulent activities.
You can learn more about the program on the Federal Student Aid website.
TPD Discharge (Total and Permanent Disability Discharge)
The TPD Discharge is a discharge that is available to students who have become totally and permanently disabled. To be eligible for discharge, you must provide evidence that you cannot work and earn an income because of your disability.
You can learn more about the TPD Discharge on the Federal Student Aid website.
Student Loan Consolidation.
If you have multiple federal student loans, you may want to consider consolidating them into a single loan. This can make it easier to keep track of your loans and lower your monthly payment. You can learn more about student loan consolidation on the Federal Student Aid website.
Career Point College Transcripts.
If you need your transcripts from Career Point College, there are multiple ways to obtain them.
You can order transcripts online through the National Student Clearinghouse or Parchment. To do this, you will need to create an account and provide your student ID number, name, and date of birth.
You can also order transcripts by mail or in person. For more information, visit the Career Point College website.
Career Point College lawsuit
In October 2016, dozens of students from Career Point College filed a lawsuit against the school. The students alleged that the school had misled them into obtaining high-interest loans and that some of them never received the federal grant money the school was supposed to distribute to them.
The lawsuit was filed against the school owners and Operators, including the CEO Lawrence Earle and Carol Kendall.
A settlement was reached in U.S. Bankruptcy Court. Earle has agreed to pay $150,000 over the next five years to resolve the lawsuit. The money will go to the college’s bankruptcy estate to pay creditors. If Earle fails to pay, then the trustee can take a $750,000 judgment, plus interest, against him.
Career Point College Closure.
On October 16th, 2018, the college announced that it would be closing its doors. This information was reported by the school President and CEO Larry Earle. Emails were sent to students informing them of the change. The reason for the closure was not entirely clear. However, many sources reported that the school’s financial aid department was involved in multiple cases of monetary fraud.
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, don’t hesitate to contact us.
Our 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.