How To Get Loan Forgiveness For University Of Phoenix

The Federal Trade Commission has already filed lawsuits against several institutions to give students equitable conditions and stop the misuse of federal funds.

One of the schools that faced lawsuits was the University of Phoenix. 

According to the FTC, the university misrepresented itself to draw prospective students. 

The university’s “Parking Lot” advertisement caused people to believe there were false job opportunities. 

They also gave false information about job replacements. 

The University Of Phoenix Agreed To A Settlement

The university and the parent company settled the case for $191 million, the highest sum ever for this lawsuit.

Of this sum, $141 million went toward the University of Phoenix loan forgiveness. And the remaining amounts were given back to borrowers as cash refunds.

Additionally, the parties were in charge of alerting credit reporting organizations to remove any debt-related concerns from borrowers’ credit histories.

This guide will explore what you need to know about loan forgiveness for the University of Phoenix. 

2 Ways To Get Your Student Loans Discharged

1. Closed School Loan Discharge

If you attended a school that closed down, you have the opportunity to discharge the loans you took to enroll in that university. 

This program can assist students with FFEL, Perkins Loans, Direct Loans, and other loan programs. To qualify for this program:

• You must have been in school when the institution closed
• You spent 120 days at the University of Phoenix from June 20, 2014, or later. If you drop out of school during this period, there’s still a chance for approval.
• You transferred your credits to a different school with a comparable program. For example, let’s say you enrolled in the University of Phoenix’s criminal justice program. Then transferred to a similar or somewhat different program, like Criminal Law.

1. Borrower’s Defense To Repayment

Applying to the BDAR’s program is one of the best alternatives for borrowers who attended the University of Phoenix. In addition, federal student loans benefit this program if the school deceives the borrower or commits misconduct.

You can request student loan forgiveness on these grounds regardless of whether the university breaks the law or neglects to follow relevant regulations.

A borrower’s defense against repayment may result in partial or total debt forgiveness. Also, it may result in payment reimbursement in cash.

Eligibility Requirements

Numerous student loan forgiveness programs consider essential services or continuous payments for a predetermined time as eligibility requirements.

Contrarily, the borrower’s defense against repayment doesn’t call for further action. Instead, it’s sufficient to establish the school’s wrongdoing and discharge the debt.

Misconduct should be directly tied to academic issues or loan conditions. Personal injuries or harassment can’t be grounds for this opportunity for forgiveness.

How To Apply For BDAR’s Program

You can apply for loan forgiveness for the University of Phoenix using an online portal, regular mail, or email. Using the online application form is one of the simplest and quickest methods.

You’ll be asked about essential details in this application, such as contact information, the start date of enrollment, the tuition cost, etc. Additionally, you must provide any papers that support the university’s wrongdoing.

Additionally, you should write and describe how you feel you qualify for this program and how you were deceived.

Transcripts, registration forms, enrollment contracts, marketing materials, etc., are typically included in the list of required papers.

You must complete the online form and print it out before signing it when applying by mail or email. 

You should mail or email the application form and any necessary supporting documentation to the Education Department.

BDAR Is The Best Option: Here’s Why

The Borrowers’ Defense to Repayment Program only offers forgiveness when the university has deceived a student. You must use all available evidence to demonstrate the wrongdoing to obtain debt relief.

The FTC previously sued the University of Phoenix for several matters that might have misled the students.

As a result, because Phoenix University has been the target of similar lawsuits, the borrowers stand a better chance of collecting the BDAR benefit.

While reviewing the borrower’s application, the Education Department may favor the case if it considers those earlier cases.

Final Thoughts

If you enrolled in the University of Phoenix, there are several ways to get your student loans forgiven. And it doesn’t matter if it’s federal or private loans. However, each alternative comes with its requirement, which may or may not work for you. 

So before you make your final decision, it may be best to contact a student loan expert to help you. They can help you take the right step and get out of debt once and for all.