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South University Loan Forgiveness Options.


South University Loan Forgiveness options are available to those with outstanding student loans from this school. If you attended this university and you owe student loans, there may be options available to help you pay for these loans.

This guide will cover the options that are available and what you can do to get the help you need.

About South University

South University is a for-profit( According to the Department of Education) private university headquartered in Savannah, GA. The university was founded in 1899, and purchased by John T. South III and his father in 1975. In 2003, John T. South III sold the university to Education Management Corporation(EDMC) based out of Pittsburgh, for $50 million.

In 2017, Dream Center Education Holdings acquired ownership of schools under the EDMC umbrella. Within a year, the non-profit organization was on the brink of bankruptcy and turned the chain of schools over to the Education Principle Foundation in 2019. Schools that weren’t acquired by the firm were closed. 

South University Lawsuit

By 2011, the parent company for South University was under fire as a result of a whistleblower that prompted a lawsuit against EDMC. They were accused of using federal funding from students to pay salaries and recruit more students, despite the student’s qualifications to attend the university. In 2015, EDMC reached a settlement which included an agreement to provide South University loan forgiveness and pay a fine of more than $95 million. 

South University was placed on probation in 2016 due to the actions of their parent company EDMC. This was after being placed on warning status in 2015, regarding their financial practices. At the end of 2017, South University’s probation was removed and the sale from EDMC to Dream Center Education Holdings was approved. 

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Student Loan Forgiveness Options

If you attended South University and have outstanding student loans from the school, there are South University loan forgiveness options available to you. These options apply only to those seeking South University loan forgiveness for federally-funded student loans. If you have a private lender, you will need to contact your lender for available options. 

To apply for these discharge options, you will need to contact your loan service provider and inform them that you wish to apply for one of these options. You can also go online and obtain an application. 

Unpaid Refund Discharge

When you attend classes for less than 60% of the loan period or you never attended classes, then you are entitled to either a partial or complete refund of your federal loans. If your school failed to give you a refund, you would need to apply for a discharge.

This method of cancellation requires that the school refund the portion of the federal loan amount owed plus any fees and interest charges accumulated on this portion of the loan. 

The information that needs to be submitted when applying for this discharge, include the following:

  • School refund formula
  • Tuition costs
  • Percentage of the course you finished or completed. 

There is no deadline for completion of the Unpaid Refund Cancellation form.

False Certification Discharge

This type of discharge is available to students that attended a school where the student’s eligibility was falsely certified. This can be done by the ability to benefit, disqualifying status, unauthorized signature/payment, and identity theft. To find out if you meet the eligibility requirements you need to contact your loan service provider.

There is a form/application for each circumstance that you would need to fill out. After submitting your application for this discharge and you are approved, your entire loan will be canceled. 

Borrower’s Defense Against Repayment 

If South University misled you or fraudulently misrepresented that resulted in you receiving federal student loans to attend their school, then you may qualify for the BDAR discharge. This will apply only to the Direct student loans used to pay for the program at the school. 

You will need to fill out an application form to receive this discharge and submit supporting documents. The information and/or documents that you need to submit include the following:

  • South University’s information and the program you were enrolled in.
  • The dates that you were enrolled in the program at the school
  • Documents that support the allegations against South University, which may include the school catalog, email correspondence, enrollment agreement, or any other form of correspondence between you and the school. 

After you submit your application, the Department of Education will go over your claims and documentation. If they approve your request, your loans will be discharged. 

Bottom Line

If you are seeking South University loan forgiveness and you are unsure of how to proceed or you have questions, you are not alone. We can help you.

Call our office and speak with one of our expert student loan specialists to help you manage your student loans.