3 Times College Closings Can Affect Student Loan Repayments

1. Education loan

2. 3 Times College Closings Can Affect Student Loan Repayments

3. By now, you've probably heard the news about the closing and recent bankruptcy filing announcement of Corinthian Colleges, one of the largest for-profit higher education organizations in the U.S. At its peak, the organization enrolled almost 80,000 students per year. • In April, the organization announced the immediate closing of its remaining 26 campuses, affecting nearly 16,000 students.

4. The coverage of these events, especially those that focused on the affected students' loan debts, left many consumers confused about their responsibilities if their college should close. • While the Corinthian situation is unique, the majority of the time you can expect to encounter one of the the following scenarios when it comes to student loans and college closings.

5. My School Closed While I Was Attending • While most school closings are planned months, if not years, in advance, there have been situations where schools have closed suddenly with little if any notice to affected students. • If you are attending or have recently attended a school that closes, you may be eligible to have your federal student loans discharged. • To be eligible for this discharge, a borrower must meet all of the following criteria. • You must have been enrolled in the school within 120 days of the school closing

6. If you weren't enrolled at the school within that 120-day window, or did complete the course work required to receive the credential, even if you didn't receive the actual diploma, then in most cases you are still required to repay your student loans.

7. What About Private Loans? • Private loans are tricky. There are generally no discharge options available, even in closed school situations. • The Corinthian case is unique in that part of what the organization was cited for was the alleged predatory private loans the schools were offering students.

8. In an unprecedented event, the Consumer Financial Protection Bureau announced a settlement offer that would result in at least a 40 percent reduction in debt for these Education loan borrowers. • There has been no discussion of any type of relief being provided for those who took private loans from other sources. • Source : http://bit.ly/1ASxaqZ

9. Follow us on https://www.facebook.com/AvanseEducationLoan https://www.linkedin.com/company/avanse-financial-services https://twitter.com/avanseeduloan https://plus.google.com/+AvanseFinancialServicesLtdMumbai https://www.youtube.com/channel/UCcsuUx1EH1C08XmX2embpug

10. Read more on Education Loans : http://www.avanse.com/avanse-education-loans/ • Thank You..!!!