College Loan Forgiveness: College Closed After You Graduated

college loan forgiveness

if you’re one of the many students who graduated from a college that closed down after you completed your degree, you may be struggling with student loan debt.

Don’t worry – there are options available to you for college loan forgiveness and repayment programs.

In this article, we’ll explain the different programs available to you that offer college loan forgiveness. So don’t give up – there is help available!

For-Profit Colleges Suddenly Closing

It’s a college student’s worst nightmare: your college suddenly closes and you’re stuck with a pile of debt and no degree. Unfortunately, this scenario is becoming all too common.

How soon can you be debt free?

In recent years, a number of for-profit colleges have closed their doors, leaving tens of thousands of students scrambling to find a new school. The reasons for these closures vary, but they often come down to financial mismanagement or regulatory problems.

Whatever the cause, the results are always the same: students are left stranded and faced with the prospect of starting their education all over again. While for-profit colleges can offer some advantages, such as flexible schedules and accelerated programs, the risks may not be worth it.

Before enrolling in any college, be sure to do your research to ensure that you’re making a wise investment in your future.

Closed Colleges Legal Problems 

For-profit colleges have come under intense scrutiny for their illegal tactics. In many cases, these colleges have closed without providing any notice to students or employees.

This has left thousands of people stranded without a college degree and saddled with debt. In addition, for-profit colleges have been known to use deceptive marketing practices to lure students into enrolling.

They often promise high-paying jobs and unrealistic success rates, only to leave students with mountains of debt and few job prospects.

As a result, many for-profit colleges are facing lawsuits and investigations from state and federal agencies. It is clear that these colleges are not looking out for the best interests of their students.

My College Closed After I Graduated Loan Forgiveness Options

When college students take out loans, they do so with the expectation that they will be able to find a job after graduation that will enable them to pay off their debt.

However, sometimes things don’t go as planned. For students who attended Corinthian Colleges, this has been all too true.

After the college closed suddenly, leaving students stranded and without a degree, many have struggled to find work that pays enough to cover their loan payments. As a result, many have fallen behind on their debt, and their credit scores have suffered.

Closed Colleges Lawsuit Settlement

Hundreds of thousands of students who attended the for-profit Corinthian Colleges chain will get their federal student loans canceled, the Biden administration announced Wednesday, in a move that aims to bring closure to one of the most notorious cases of fraud in American higher education.

Under the new action, anyone who attended the now-defunct chain from its founding in 1995 to its collapse in 2015 will have a chance to get college loan forgiveness. This will erase $5.8 billion in debt for more than 560,000 borrowers, which according to the agency, will be the largest single loan discharge in Education Department history.

College Loan Forgiveness Options

The closure of your college may impact your ability to repay your student loans. If you are unable to find a job in your field, you may be eligible for any of the college Loan Forgiveness programs below:

These include:

Borrowers’ defense to repayment

The US Department of Education offers a program called Borrowers’ Defense to Repayment, which may help individuals obtain college loan forgiveness for those who have been the victim of fraud by their college or university.

This program may provide relief from federal student loan debt for borrowers who have been misled, coerced, or deceived by their schools.

How soon can you be debt free?

To be eligible for this college loan forgiveness program, borrowers must submit an application along with supporting documentation.

If approved, the borrower’s federal student loan debt may be forgiven. The borrower may also be eligible for a refund of amounts paid on the loan.

Public Service Loan Forgiveness Program (PSLF)

The Public Service Loan Forgiveness Program (PSLF) is a government program that forgives federal student loans for borrowers who work in certain public service jobs. To qualify, borrowers must make 120 qualifying monthly payments while working full-time for an eligible employer.

Once the borrower has made the required payments, the remaining balance on their loan will be forgiven. The PSLF program is designed to encourage people to enter and remain in public service jobs.

For example, teachers, nurses, and soldiers are all eligible for loan forgiveness under this program. While the requirements for PSLF can be difficult to meet, the program offers significant financial benefits for those who are able to qualify.

Income-Based Repayment Plans

There are four types of repayment plans available to federal student loan borrowers: Standard, Extended, Graduated, and Income-Based Repayment. Of these, Income-Based Repayment is the only one that is based on your income and family size.

If you have a partial financial hardship, you may be eligible for this plan. Under Income-Based Repayment, your monthly payment amount is capped at an amount that is intended to be affordable based on your income and family size.

Your payment may be as low as $0 per month, but will never exceed 15% of your discretionary income.

This can be a good option for borrowers who are struggling to make payments on their loans, as it will lower their monthly payments and help them get out of debt more quickly.

However, it is important to note that any forgiven debt may be taxable. As a result, borrowers should carefully consider all of their options before choosing an income-based repayment plan.

Talk to a Student Loan Advisor

If you’re feeling overwhelmed by your student loan debt, don’t worry. You’re not alone. Millions of people are in the same boat. But there is help available.

Talk to a Student Loan Advisor today about your options for repayment and consolidation. Student Loan Advisors can help you find the best plan for your unique situation and get you on track to becoming debt-free.