What You Need To Know About Argosy University Discharge
What happens to college student loans once a college campus closes is not only a worry for former ITT Tech graduates. The list of shuttered schools has become a long one, consisting of for-profit schools like Argosy University, Corinthian Colleges and ITT Technical Institute. Many technical college graduates have obtained loans from these schools in the hopes that they would somehow repay them upon graduation. However, with few federal programs offering student loans for forgiveness or reduced loan amounts, these graduates are stuck with their student loans.
In response to this issue, several federal student loan forgiveness programs have been created by the government. Some of these programs have forgiveness programs available even for students who do not hold a specific degree or who attended an accredited college as well. Others only have forgiveness programs for federal loans, making Argosy University’s federal student loan forgiveness program the largest of its kind. Other schools may have smaller federal loan forgiveness programs, but the number is still relatively small.
Students who wish to pursue higher education can apply to the Argosy University government loans for federal student loans. In order to qualify, students must meet certain requirements. They must be at least a half-time student in good standing. They must also not owe more than $5000 in federal or private student loans already outstanding. The repayment terms are also specific. The longer a student has been employed at Argosy, the more likely he or she will be eligible for federal student loans for Argosy University.
If a student wishes to repay his or her Argosy University debt through the government, there are a few things that he or she should be aware of. One question that many borrowers ask is, “Do I have to pay my Argosy debt in full each month during repayment?” The answer to this question is “No.” In fact, students are encouraged to pursue repayment of their Argosy debt in part by paying more than half of their monthly payments in a lump sum. However, this is not done automatically. Students must complete and submit a Federal Direct Plan (FDCPA) application, which is available on the government’s website, along with any other applicable documentation.
Another question that many students have is, “What is the procedure for repaying my Argosy debt in case of an audit from the U.S. Department of Education?” A portion of your loan is forgiven when you are enrolled at Argosy University, so the amount you receive is equivalent to the least total amount of money that the government will forgive. In cases where your college aid is not authorized to pay the amount of your loan, or if the grant funds that you are awarded do not cover the full amount of your loan, you will not receive any of the money that is owed to you. Students who believe that their college loans cannot be repaid or that they are not eligible for government student grants should apply for assistance from the FAFSA, or Free Application for Federal Student Aid.
Argosy University offers several different types of forbearance options, and the government does much of its business through these options. Forbearance occurs when the borrower reworks his/her budget to reduce expenses. Examples include reducing part-time work hours, increasing online access to the university, or reducing the total number of student loans. Reinstatement occurs when a borrower takes out another loan at a better rate of interest. Students seeking reinstatement should also apply for assistance from the FAFSA.
Students who wish to start their academic careers at the U.S. schools that they have chosen but cannot afford the fees can apply for a New School Loan program from Argosy University. Unlike most of the other student aid programs, the New School Loan Program allows students to borrow up to a maximum of $5000. Students will be allowed to pay back their loans based on their income after they have graduated from Argosy University. In order to qualify for the program, the student must also demonstrate a need for financial assistance.
A closed school student discharge happens when a student no longer has eligibility to receive federal student loans and/or any type of federal direct student aid because he or she dropped out of school. There are several circumstances that can lead to this discharge. Some reasons may include the inability to repay a loan, or the inability to comply with a university’s enrollment requirements. The student may also decide to drop his/her degree in order to pursue employment outside the U.S. that is not accessible via Argosy. Students who have exhausted their eligibility for both federal loans and/or direct student aid may still qualify for a discharge if they meet certain requirements.