If you are a former Hesser College student who is currently struggling to repay your student loans, you may be eligible for loan forgiveness or repayment assistance programs.
Several different options are available, and it can be difficult to determine which program is right for you.
In this article, we will explain the different programs available to Hesser College graduates. We will also provide information on how to apply for these programs.
About Hesser College
Hesser College was a for-profit college located in Manchester, New Hampshire. The school offered associate’s and bachelor’s degrees, as well as certificate programs. It was owned by National Education Corporation and operated from 1974 until 2010 when it ceased operations.
The college had been accredited by the Accrediting Commission of Career Schools and Colleges of Technology (ACCSCT) since 1977. Hesser College was also approved by the New Hampshire State Approving Agency for Veterans’ Training.
In May 2009, the college was placed on probation by its accrediting agency due to financial stability and administrative capacity concerns. In September 2009, the US Department of Education notified the college that its eligibility to participate in federal student financial aid programs was in jeopardy due to its probationary status with its accrediting agency.
Hesser College Closure
In December 2009, the college announced it would be closing all of its campuses nationwide and ceasing operations at the end of the year. This left many students who were attending the school at the time without a degree and with significant student loan debt.
Hesser College Lawsuits
In May 2010, two former students of the college filed a class-action lawsuit against the school, alleging that the school misled them about their job prospects after graduation. The lawsuit also alleged that the school engaged in deceptive and unfair practices regarding its recruiting, admissions, and financial aid processes.
The lawsuit was eventually settled in 2013 for $40 million. Of that settlement, $20 million was set aside for student loan forgiveness for former students of Hesser College.
Hesser College Illegal Marketing Activities
The Federal Trade Commission (FTC) has taken action against Hesser College, alleging that the for-profit school misled students about their job prospects and the amount of debt they would incur. The FTC’s complaint alleges that Hesser College engaged in several illegal marketing practices, including:
- Making false claims about job placement rates
- Failing to disclose that some programs were not accredited
- Charging excessive fees for services like tutoring and career counseling
As a result of these actions, the FTC is seeking a court order requiring Hesser College to provide relief to students who were harmed by its illegal marketing practices.
If you are a former student of Hesser College, there are several options available to you for loan forgiveness or repayment of your student loans.
Income-Based Repayment Plans
If you’re struggling to make your monthly student loan payments, you may be eligible for an income-based repayment plan.
With these plans, your monthly payment is based on a percentage of your income, so if your income goes down, your payments will too.
You may also be able to get your loans forgiven after making 20 or 25 years of qualifying payments.
If you think an income-based repayment plan could help you, contact your loan servicer to see what options are available to you.
You can also check out the Department of Education’s website for more information on these plans or by speaking with a student loan advisor at their Student Loan Forgiveness Hotline at 855-678-0522.
Public Service Loan Forgiveness Program
The Public Service Loan Forgiveness Program (PSLF) is a federal program that forgives the remaining balance on your Direct Loans after you have made 120 qualifying monthly payments under a qualifying repayment plan while working full-time for a qualifying employer.
You may qualify for PSLF if you work for:
A government organization, A not-for-profit organization that has been designated as tax-exempt by the Internal Revenue Service (IRS), or another type of not-for-profit organization that provides certain types of public services.
Service in AmeriCorps or Peace Corps may also count toward PSLF.
Borrowers’ defense to repayment
is a federal student loan forgiveness program. The program is designed to help borrowers who have been the victims of fraudulent schools. If you have private student loans, you may still be eligible for relief through borrowers’ defense to repayment.
The first step to applying for borrowers’ defense to repayment is to complete and submit the application form. You will need to provide documentation that proves that you were defrauded by your school.
Once you have submitted the form, the Department of Education will review your case and make a decision.
If you are approved, your loans will be forgiven and you will not have to repay them.
If you are not approved for borrowers’ defense to repayment, there are other options available to help you with your student loans. You may be eligible for income-driven repayment plans, loan consolidation, or student loan refinancing.
If a school closes while you are enrolled, or within 120 days after you withdraw, the Department of Education (ED) may discharge your federal student loans.
If your school closes and you have Federal Direct Loans, you may be eligible for a discharge of your loans. You can apply for a discharge if:
- The school closed while you were enrolled, or within 120 days after you withdrew;
- You were promised a job by the school and it did not materialize; or
- You were enrolled in a program that was not accredited or did not have state approval.
Speak with a Student Loan Advisor
We know that paying back your student loans can be a tough process, but we’re here to help. If you have any questions, please don’t hesitate to reach out to a student loan advisor. We’re always happy to help in any way we can.