It's been a tough year for For-Profit colleges since the collapse of the majority of them. In 2017 Corinthian Colleges Inc. turn into non-profit but still collapse. Now thousands of students were in shock with the news that their colleges were closing, and for the ones that graduated they come to find out their certificate offers little to no value. This event led to many students with student loan debt and the question of what they would do with this debt since the college close or their certificate is not accredited.
While there is not a guaranteed student loan forgiveness option for many, there are several other options to conquer your student loan battle continue to read on we will explain all.
What happened to Corinthian Colleges?
First of all, is important to understand what happened to for-profit colleges. In 2010 for-profit colleges increased their recruitment efforts as more schools became eligible to receive government funding reaching almost 2.2 million in enrollment by that year. Since then enrollments felt almost 40 percent, with a high number of defaulted student loans. This caused the Obama administration to take a look into their situation.
Corinthian Colleges Lawsuit
Following the investigation of the high number of defaulted student loan borrowers and the decline of enrollments, the Obama administration found many fraudulent activities by Corinthian Colleges. The fraudulent activities found on Corinthian colleges were, misleading students about their accreditation, job placement, fail to distribute financial aid and more. Due to the lawsuits, many Corinthian Colleges opted to close their operations.
Corinthian Colleges List
The Corinthian College, a for-profit company which operates under Everest, WyoTech, and Heald brands has 107 colleges. Here's some of the most well known:
WyoTech
Le Cordon Blue College of Culinary Arts
Concorde Career College
Globe University
Charlotte School of Law
LINCOLN TECHNICAL INSTITUTE
Strayer University
Vatterott College
Everest College Phoenix
Corinthian colleges Student Loan Debt Forgiveness
Many students can realistically obtain student loan debt relief based on the Obama student loan forgiveness act in 2016 if you were defrauded or misled by the college. Of course, there are some complications and proof you need to show in order to qualify for such debt relief programs.
Here are the 4 options you have for student loan debt relief.
1.Closed School Discharge -This program is available if you attended a school that closed while you were enrolled or if you withdrew 120 days before the school's closure. In some cases, The government may extend the 120 day period.
2.Borrowers Defense to Repayment -This program was created after the massive lawsuits going against for-profit schools and those defrauded students seeking student loan forgiveness.
3.Income Base to Repayment -The Department of Education offers many different loan repayment options to help make payments more manageable. If this includes you, one of the most popular repayment programs to apply for is Income-Based Repayment.
4. Student Loan Refinance -Due to the multiple payments and high interest rates, many Americans can't afford to keep up with the payments causing them to fall into default. If this is your situation, student loan consolidation or refinancing may be a great option for you, this could help you manage your payments and save money.
More Colleges to Close.
More colleges will be closing this year due to the difficulty to keep them afloat it's important to know what options you have and how to go about it.
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