Drake College of Business to forgive about $15 million in student loans.
Just a few years ago Drake College of Business announced that they will be closing all their campuses in Elizabeth and Newark, New Jersey.
Drake College of Business had a rapid growth of about 400 percent of enrollments between 2009 and 2010, after seeing such rapid growth the media started an investigation and release a report that exposed the college for recruiting homeless people from shelters.
Months after the report Drake College of Business informed the Accrediting Council for Independent Colleges and School that it will be shutting down all its campuses after more than 130 years in Business, formerly known as the Jersey City Business School.
Drake College of Business was one of the colleges with the highest loan default rate. In September 2018 a federal judge ruled that they will cancel the loans of about 15,000 borrowers who qualified for “closed school” loan discharges but who haven’t yet applied for that benefit.
The good news is that half of the borrowers who will now receive loan discharges attended campuses owned by Corinthian Colleges, the chain of for-profit colleges that went bankrupt in 2015. The remaining students attended other schools that closed sometime between Nov. 1, 2013, and Dec. 4, 2018.
How to qualify for Drake’s College of Business Student Loan Forgiveness in 2019.
Now which options you have to wiped out your student loans:
The Borrowers Defense To Repayment.
Anyone who attended a for-profit school and committed fraud either by lying about their accreditation or false advertising about job placement or any other type of fraud against them is eligible for loan forgiveness or loan discharge via The Borrowers Defense To Repayment.
This program was created by the Federal Government to protect students who were defrauded by their college institution with job placements and incentives to enroll in their college.
Keep in mind that you will be filing a claim against the school and will need to support and link all the college fraudulent activities with your personal situation. This means that all you need to do is prove that the college lied to you and explain why you deserve to receive a discharge.
Also, be aware this application requires time because you only have one chance, making sure you do it correctly will help you have a good chance of having your student loan forgiven.
Examples of For- Profit Colleges Illegal Marketing Activities.
- Misrepresenting their job placement rates. For example, telling prospective students that 100% of their graduates in a particular field could find a job within the first month after graduation
- Misrepresenting the quality of a program by telling students that they will be able to easily pass licensure exams in their field after completing a degree from Drake’s College of Business
- Pressuring vulnerable, low-income students into taking out huge loans in order to pay the tuition cost for one of their sub-standard education programs
Did you experience one of this marketing activities ? If yes, you need to file an application as soon as possible!
The Closed School Loan Discharge Program.
As I mentioned above, there are two ways to receive student loan forgiveness as a former student of Drake College of Business, so if you don’t feel that the school defrauded you and therefore don’t think you’ll qualify for the Borrower’s Defense program, then have no fear, because there is another way.
The Closed School Loan Discharge Program is your second best way to qualify for a Drake College of Business discharge, and it was created for students who were still attending the school when it shut down.
The nice thing about Closed School Loan Discharges is that you don’t have to do any legal wrangling or convincing via arguments and evidence because Closed School Discharges is a binary thing – if you were a student who left the school no more than 120 days prior to it’s closing (or if you never left it at all, but were still studying at the time of the closure), then you qualify for a complete student loan discharge.
And that’s a great thing for those of you who were left in the cold when Drake College of Business shut their doors!
How Do I Apply for a Closed School Discharge?
The people who service your loan are the ones that send the money to via your student loan payments every month.
Every loan servicer has a different procedure in place for processing these applications, so you’ll need to find out what your servicer requires before you can determine how to proceed.
After you submit your Closed School Loan Discharge application, your servicer is legally obligated to inform you of their process, and then as long as you qualify for the discharge, and you follow their instructions on what to do next, you should get your debt fully forgiven.
Finally, remember every case is different and if you still unsure of what options you have, a trusted and professional assistance with a free consultation to help you better understand your options can help you make a decision.