Loan Debt of Some Art Institute of Colorado

Students who attended the Art Institute of Colorado in 2018 will have their student loans canceled and their federal Pell grant eligibility restored, consistent with an announcement Friday from US Secretary of Education Betsy DeVos.

The announcement comes because the US Department of Education faces a federal lawsuit and mounting criticism over its handling of federal loan forgiveness programs including shielding Dream Center Education Holdings – owner of the Art Institutes – from consequences following lying to students about the accreditation of its since-shuttered schools, consistent with The Washington Post. House Education and Labor Committee documents released in October show the federal Department of Education gave $ 10.7 million in federal loans and grants to students at Art Institute locations, including Colorado’s, while the faculties weren’t fully accredited.

“The Department is committed to holding institutions and accreditors accountable to the scholars they serve, ”DeVos said during a news release issued Friday. “In this instance, students were failed and need to be made whole. By canceling these students’ loans and restoring their Pell eligibility, also as extending the closed school discharge period, we hope that these impacted students will now have the tools and resources they have to finish their education. ”

More than 1,500 borrowers who attended the Art Institute of Colorado or the Illinois Institute of Art will have an estimated 4,000 loans canceled, the news release said. It’s unknown what proportion of the $ 10.7 million in loans and grants were awarded to students in Colorado.

Where to File the Borrower’s Defense Claim
For former students of the Art Institutes who want to apply for the art institute loan forgiveness under the Borrower’s Defense Against Repayment Program, please head to the official government website and complete an online application form to begin the process.
Note: Your claim will not be processed if you file through any other means apart from the official government website. There are student loan scams all over the internet now, and you don’t want to be a victim. Therefore, it is prudent to proceed with caution anytime you need to fill out an electronic form that requires personal information, especially in cases that involve financial details.

Check the Status of an Application
As with many state affairs, applications for the Borrower’s Defense Claim are not processed promptly. The timeframe for processing applications vary. However, an applicant can wait an entire year for the application to be processed. We advise you to exercise patience since the line must have grown even longer in recent times. Seeing as many more students intend to benefit from the Art Institutes loan forgiveness program.
This is a simple heads up to encourage students who might get discouraged if they do not hear from the Department of Education. Hence, it is advisable not to waste any further time. Apply right away for your Art Institute loan forgiveness program and have your student loan written off.

Forecasted Changes to the Art Institutes Loan Forgiveness Programs
According to the Secretary of Education, Betsy DeVos, the Borrower’s Defense program might be removed from the U.S educational system entirely. Therefore, you must move quickly, take advantage of the Art Institute lawsuit, and apply at the earliest. Until they sign the papers to get rid of the program entirely, students of the Art Institute can still benefit from loan forgiveness through the Borrower’s Defense Against Repayment.

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