Defense To Repayment
Debt Collective has created an application to request student debt discharge from the Department of Education. This app has legally pointed questions that refer to specific laws that your college may have broken. The application is strictly for Federal Loans. The Department of Education is responsible for properly regulating these schools as well as protecting the students who attend. Once you have submitted your defense to repayment app with supporting documentation, it goes directly to ED.
Many defrauded borrowers who have submitted their defense to repayment app have their federal loans in "Administrative Forbearance." Administrative Forbearance is when your loan servicer may not collect or garnish your wages for your federal student loans but are still accruing interest. This is a "temporary solution" until ED follows its own regulations and laws in place to fully discharge the debt.
You may submit a defense to repayment app if you feel you were defrauded by your school, lied to about job placement, did not know they types of loans you would be receiving until after you graduated. You may submit an application if you are currently enrolled and your campus is closing. Even if your wages or tax returns are being garnished as a result defaulting on your federal loans, you may submit the defense to repayment app.
For instructions on how to complete the Defense to For-Profit Student Loan Fraud
Teach Outs and Campus Closures
When a campus is closing and you're still enrolled, the school can offer a "Teach Out." 'Teach out' is a situation where no new students can be enrolled in a course of study, and arrangements are in place to ensure that all existing enrolled students can either complete the course of study or transition to a mutually agreed course at no disadvantage to the student.
DO NOT opt for "Teach Out" because it will DISQUALIFY you from student debt discharge from your defunct college.
According to the Department of Education:
You may be eligible for a 100% discharge of your Direct Loans, Federal Family Education Loan (FFEL) Program loans, or Federal Perkins Loans under either of these circumstances:
- Your school closes while you're enrolled, and you do not complete your program because of the closure. If you were on an approved leave of absence, you are considered to have been enrolled at the school.
- Your school closes within 120 days after you withdraw.
You are not eligible for discharge of your loans if your school closes and any of the following is true:
- You withdraw more than 120 days before the school closes.
- You are completing a comparable educational program at another school
- through a teach-out agreement with the school,
- by transferring academic credits or hours earned at the closed school to another school,
- or by any other comparable means.