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Anonymous asked in Education & ReferenceFinancial Aid · 1 month ago

Student paid off but I want to reverse it?

I graduated from a private beauty school and did not receive my license (from my abusive ex he stopped me from going) once I graduated my living situation changed I have proof of homelessness and was told I could apply for student loan forgiveness. I called the number and was told by the operators  it didn’t matter because I needed to show my proof 30 days after I had left. Since my wages have been garnished and this year was the last garnishment. This school closed down in 2016 for embezzling our student loans and not providing students with supplies. I graduated in 2014 I am not working as a beautician and the school really sucked. 

Question is there any way to fight this to court I have an appointment with legal aid next month because I’m still homeless and have 2 kids is there any options for me to receive my garnishments back. It’s all taken from my kids taxes and they are getting older I think i could use it as a down deposit for a little home. 

2 Answers

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  • nancy
    Lv 7
    1 month ago
    Favorite Answer

    Unfortunately, I think your chances of success with this are very small. There are several loan forgiveness and discharge programs, but you don't seem to qualify for any of them. Loan forgiveness programs cancel a portion of a loan in return for your providing certain services (such as working in a public service job), or when you are in certain extended or income based payment programs and still have a balance due after the term of the loan ends. Normally, you can only have the remaining balance forgiven, not payments that you already made. Since your loans are already paid off, there is nothing left to forgive. Loans can also be discharged for various reasons, such as permanent disability, when a school closes before the student can complete the program, or when a school defrauds a student. However, as you have discovered, there are very specific conditions surrounding discharges. For schools that have closed, you had to have been prevented from completing your program due to the closure, and you had to have been enrolled at the time the school closed or withdrawn within 120 days of the closure. Since you graduated in 2014 and the school didn't close until 2016, you weren't prevented from completing your program due to the closure, and you weren't enrolled at the time that it closed. So you wouldn't qualify on that score. It's possible that you would qualify on the basis of being defrauded by the school, particularly if there is a class action suit against the school. But unless you have rock solid documentation of fraud, your chances as an individual whose loans are already paid off are pretty slim (particularly given the current administration's attitude toward student loan forgiveness). When you signed for your loans, you were required to sign a loan document called the Master Promissory Note that explained the terms of the loan to you. You also were required to take an Entrance Counseling session that explained that you were responsible for repaying the loans even if you did not complete the program, weren't satisfied with the school, or didn't find employment in your field after graduation. Cosmetology schools are notorious for being poor choices, but, unfortunately, the fact of the matter is that the lender isn't responsible for your making that choice.

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  • ?
    Lv 7
    1 month ago

    Your best option is to go to your appointment with legal aid; only they would be able to answer your specific questions. It sounds like you are also looking to take part in a class action lawsuit against this school. If there is a lawsuit, they can probably find some record of its filing.

    Good luck!

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