College Students in Ohio are receiving some long-awaited student loan debt relief to the tune of $12 million in January 2019. Almost 5,000 college student will see forgiveness of their student loan debt as part of a settlement with for-profit education company Career Education Corporation. The postsecondary higher education provider ran numerous American campuses which stand accused of misleading students about the cost of the programs they offered.
Nation Wide Student Debt Forgiveness
Ohio students were joined by nearly 34,000 total students from 48 the lawsuit settlement against the for-profit educator to eliminate roughly $500 million in student loan debt. The basis for the debt relief lawsuit was that CEC misled prospective students regarding costs of education, job placement rates, and the average earnings of graduates. For-profit colleges are required to accurately provide students with this critical information in a preliminary disclosure. As a part of the settlement, the company did not admit any wrongdoing.
When Student Debt if Forgivable
According to the Federal Student Aid office of the US Department of Education, students can seek forgiveness, cancellation, or discharge of student loans if a school closes while you are enrolled or within 120 days of withdrawal from the educational institution. Borrowers may also be eligible for forgeries if a school misleads students or engages in misconduct in violation of specific laws. One such example is borrowers who attended Corinthian Colleges in July 2010 to September 2014, who were able to utilize the Borrower Defense to Repayment Loan Forgiveness to eliminate their student loan debt.
Student Debt Relief
Student loan debt comprises a vast amount of the nation’s total debt. Because you must repay student loans even if you don’t finish your education, can’t find a job in your educational field, or are generally unhappy with your training, countless Ohioans struggle with this type of debt without any direct benefits. Even an Ohio bankruptcy may not be able to discharge student loan debt. Thankfully, there are numerous state and federal debt relief options for Ohio student debt available to consumers. If you have additional debts that are preventing you from meeting your student loan debt obligations, consider contacting a Dayton OH bankruptcy attorney to find out how bankruptcy protection can stop collections and give you time to repay all your debt.