why should you have to pay back student loans when the school went bankrupt before you finished?
Asked by dibabyThe school went bankrupt before I finished the course so I got nothing out of it, since it was a radio broadcasting school. They were suppose to help me find employment and make free air tapes for 5 years after I finished, but I never got to finish. But I sent a letter to proper people stating this fact, but they said I had to pay the money back plus all the interest and late charges during the time that I tried to fight it. The school got the pell grant plus the student loan money. I never got any of it. They recieved the checks and turned them over for me to sign. I never saw the front of them. So they got all there money and I got nothing, but a loan that I have been paying on for the last 4 years.
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Answered by FinAidGrrl
If your loans are federal (e.g. Stafford, Perkins) in some cases your loans CAN be discharged (i.e. the debt will be forgiven). This kind of loan cancellation typically applies to "closed" schools. Does your school still exist? You can find out if it is considered closed by looking it up on the official Dept. of Education website, here: wdcrobcolp01.ed.gov/CFAPPS/FSA/closedschool/searchpage.cfm . If your school is listed here, you might be able to have your debt forgiven. You may have to make a few calls, but it could be worth it! To contact the Department of Education Case Team for your state look it up here: studentaid.ed.gov/PORTALSWebApp/students/english/closedinfo.jsp?tab=attending If your school does still exist, you might have a bit of a problem. Technically, when you borrowed the loans, you signed an Entrance Interview form agreeing to the terms of the loan. One of these "terms" was that you agree to repay your loan even if you (a) do not complete the program and/or (b) are dissatisfied with the program.
If your loans are federal (e.g. Stafford, Perkins) in some cases your loans CAN be discharged (i.e. the debt will be forgiven). This kind of loan cancellation typically applies to "closed" schools. Does your school still exist? You can find out if it is considered closed by looking it up on the official Dept. of Education website, here: wdcrobcolp01.ed.gov/CFAPPS/FSA/closedschool/searchpage.cfm . If your school is listed here, you might be able to have your debt forgiven. You may have to make a few calls, but it could be worth it! To contact the Department of Education Case Team for your state look it up here: studentaid.ed.gov/PORTALSWebApp/students/english/closedinfo.jsp?tab=attending If your school does still exist, you might have a bit of a problem. Technically, when you borrowed the loans, you signed an Entrance Interview form agreeing to the terms of the loan. One of these "terms" was that you agree to repay your loan even if you (a) do not complete the program and/or (b) are dissatisfied with the program.
