Student Loan Consolidation ................. p.

Student Loan Repayment Plans .......... p. 4

Student Loan Forgiveness ..................... p. 5

“Cause of Action Claim” ..................... p. 10

Referral Program .................................. p. 16

A Guide to Our Services info@studentsservicecenter.com page 1

 •
STUDENT LOAN CRISISI
OVER 1.2 TRILLION IN STUDENT LOAN DEBT

There is an estimated $1.2 trillion in student loan debt in the United States
and that number is continuing to grow by the minute! 1 in 4 Americans are
burdened with this debt which they must deal with on a day-to-day basis.
The good news is that there have finally been programs released that can
help lower your student loan payments and possibly even forgive your debt
completely. These new repayment programs are designed to combine one or
more of your eligible Federal Student Loans into one new loan. More
importantly, there are flexible repayment options available that are tailored
to your own unique circumstance and financial situation.

A Guide to Our Services page 2

WHAT ARE SOME •
BENEFITS TO
REDUCE LOAN BALANCE

There have been multiple different forgiveness

CONSOLIDATING programs that have recently been introduced that

YOUR STUDENT
LOANS?
Consolidating your student loans is the first step
in gearing towards lowering your monthly student
loan payments. A Federal student loan
consolidation is the process in which you combine
all your different Federal student loans into one
loan, with one monthly payment. Some of the
benefits of moving forward with the consolidation
include the following:
can eliminate your student loan debt completely!
Depending on which forgiveness program you
qualify for, you may get part of your student loan
debt forgiven or the whole amount all together.
These programs will be discussed in more detail
below.
NO MINIMUM OR MAXIMUM LOAN
There is no required minimum or maximum loan
balance to qualify for a direct consolidation loan!
GET OUT OF DEFAULT/STOP WAGE
GARNISHMENT

ONE LENDER AND ONE MONTHLY PAYMENT
The consolidation process will combine all your
different Federal Student Loans into one loan with
one payment. This will help borrowers get more
organized and help manage their debt more
efficiently.
FLEXIBLE REPAYMENT OPTIONS
There have been multiple different repayment
plans introduced which cater to different
borrowers unique circumstances. These plans are
designed to be flexible and tailored to your own
unique circumstance and financial situation. They
will be discussed in more detail below.
If you have already defaulted on your student
loans or are in danger of defaulting, a direct loan
consolidation can possibly get you out of default
and back into a current status. If your wages are
being garnished, there are programs available to
stop wage garnishment and get you back into a
current loan status.
INCREASE YOUR CREDIT SCORE
Direct loan consolidations can help get you back
on tract and current on your student loans which
can have a positive impact on your credit score.

LOWER YOUR MONTHLY STUDENT LOAN

PAYMENTS

One of the immediate benefits of consolidating

your student loans are the lowering of your
monthly student loan payments. Depending on
the repayment plan that you qualify for, these
payments can possibly get lowered by more than
50%!

A Guide to Our Services 866.200.8286 info@activedreamsolutions.com

info@studentsservicecenter.com page 3
 WHAT TYPE OF REPAYMENT PLANS ARE THERE?
AFTER YOU CONSOLIDATE YOUR LOANS, YOU WILL POTENTIALLY BE ELIGIBLE FOR MULTIPLE REPAYMENT
PLANS THAT CAN LOWER YOUR MONTHLY PAYMENTS AND/OR REDUCE YOUR TERM!
REPAYMENT PLANS AVAILABLE
STANDARD REPAYMENT PLAN
Under the Standard Repayment Plan, you will be
paying a fixed monthly loan payment (usually 1%
of your loan amount) each month until your
loan(s) are paid in full. Your monthly payments
will be at least $50 for up to 1 Oto 30 years,
depending on your student loan amount.
INCOME CONTINGENT REPAYMENT PLAN (ICR)
Under the Income Contingent Repayment Plan,
your monthly payments will be based on annual
income, loan balance, and family size.
GRADUATED REPAYMENT PLAN
Under the Graduated Repayment Plan, your
payments start out low and increase every two
years. The length of the repayment plan is
typically 10 years. This plan is ideal for borrowers
who anticipate their income increasing steadily
over time.
INCOME CONTINGENT REPAYMENT PLAN (ICR)
Under the Income Contingent Repayment Plan,
your monthly payments will be based on annual
A Guide to Our Services
income, loan balance, and family size. Payments
on this program are capped at 20% of your
discretionary income with a maximum term of 25
years. Any debt remaining after the term will be
completely forgiven!
INCOME-BASED REPAYMENT PLAN (IBR)
Under the Income-Based Repayment plan, your
monthly payments will be based on annual
income, loan balance, and family size. Payments
on this program are capped at 15% of your
discretionary income with a maximum term of 25
years. Any debt remaining after the term will be
completely forgiven!
PAY AS YOU EARN REPAYMENT PLAN (PAYE)
Under the Pay As You Earn Repayment plan, your
monthly payments will be based on annual
income, loan balance, and family size. Payments
on this program are capped at 10% of your
discretionary income with a maximum term of 25
years. Any debt remaining after the term will be
completely forgiven!
*In order to qualify for PAYE, your loans must have
originated after October 1st, 2007
page 4
WHO QUALIFIES FOR THE FORGIVENESS PROGRAMS?
•
THERE ARE MULTIPLE FORGIVENESS PROGRAMS AVAILABLE THAT CAN FORGIVE A PORTION OF
YOUR STUDENT DEBT, OR EVEN THE WHOLE AMOUNT! THE SECTION BELOW WILL COVER
ELIGIBILITY GUIDELINES AND REQUIREMENTS.

What are the different types of
forgiveness programs available?
PUBLIC SERVICE LOAN FORGIVENESS (PSLF)
The Public Service Loan Forgiveness program is
designed for borrowers who work full-time in the
public service sector. Under this program,
borrowers may qualify for forgiveness of the
remaining balance of their Direct Loans after they
have made 120 qualifying payments on those
loans while employed full time by certain public
service employers. Some of the qualifying factors
under the PSLF program include making 120 on­
time, full, scheduled, monthly payments on your
direct loans (only payments made after October 1,
2007 qualify). Moreover, those payments must be
under a qualifying repayment plan. Last but not
least, when you make each of those payments,
you must be working full-time at a qualifying
public service organization (call to inquire about
which organizations qualify).
Loans (if you have PLUS loans only, you are not
eligible for this type of forgiveness).
* You must not have had an outstanding balance on
Direct Loans or Federal Family Education Loan (FFEL)
Program loans as of Oct. 1, 1998, or on the date that
you obtained a Direct Loan or FFEL Program loan
after Oct. 1, 1998
TOTAL AND PERMANENT DISABILITY DISCHARGE
(TPDD)
Under the Total and Permanent Disability
Discharge program, you may qualify for complete
forgiveness of your student debt if you are totally
and permanently disabled. You must provide
documentation to prove your total and
permanent disability (call us now to see what
exact documentation is needed).
!'"·'

TEACHER LOAN FORGIVENESS (TLF)

.�
Under the Teacher Loan Forgiveness program, if J
you teach full-time for 5 complete and
consecutive academic years in certain elementary
and secondary schools and educational service �. f
·-1>
c·
rt
agencies that serve low-income families, and -� 't

meet other qualifications, you may be eligible for

forgiveness of up to $17,500 on your Direct
Subsidized and Unsubsidized Loans and your
Subsidized and Unsubsidized Federal Stafford

A Guide to Our Services page 5

WHO IS ELIGIBLE FOR A DIRECT CONSOLIDATION
LOAN?
To qualify for Direct Consolidation Loans,
borrowers must have at least one Direct Loan or
Federal Family Education Loan (FFEL) that is in
grace, repayment, deferment or default status.
Loans that are in an in-school status cannot be
included in a Direct Consolidation Loan.
Borrowers can consolidate most defaulted
education loans, if they make satisfactory
repayment arrangements with their current loan
holder(s) or agree to repay their new Direct
Consolidation Loan under the Income Contingent
Repayment Plan or Income Based Repayment
Plan.
Borrowers who do not have Direct Loans may be
eligible for a Direct Consolidation Loan if they
include at least one FFEL Loan and have been
unable to obtain a Federal Consolidation Loan
with a FFEL consolidation lender or have been
unable to obtain a Federal Consolidation Loan
with income-sensitive repayment terms
acceptable to them or intend to apply for loan
forgiveness under the Public Service Loan
forgiveness Program. Borrowers who have only a
Direct Consolidation Loan cannot consolidate
again unless they include an additional loan.
CAN I OBTAIN A DIRECT CONSOLIDATION LOAN IF
I DON'T HAVE ANY DIRECT LOANS?
Yes, borrowers without any Direct Loans may be
eligible for a Direct Consolidation Loan if they
include at least one FFEL Loan and have been
unable to obtain a Federal Consolidation Loan
with a FFEL consolidation lender or have been
unable to obtain a Federal Consolidation Loan
with income-sensitive repayment terms
acceptable to them or intend to apply for loan
forgiveness under the Public Service Loan
Forgiveness Program.
A Guide to Our Services
•
CAN I CONSOLIDATE A PLUS LOAN?
Yes, it is possible to consolidate Perkins Loans
into a Direct Consolidation Loan if borrowers
include at least one Direct Loan or Federal Family
Education Loan (FFEL) in their request. Perkins
Loans cannot be included in a Direct
Consolidation Loan by themselves. Furthermore,
all Perkins Loans consolidated into the Direct
Loan Program will be included in the
unsubsidized portion of the Direct Consolidation
Loan.
Borrowers should carefully weigh the advantages
and disadvantages of including a Perkins Loan in
a consolidation loan. While the borrowers gain
the benefits of the Direct Consolidation Loan
Program, they also lose the benefits associated
with the Perkins Loan Program.
We recommend that you consider the following
points prior to making a decision:
• Perkins Loans are eligible for additional
cancellation benefits, such as performing certain
kinds of public service. This benefit is lost when a
Perkins Loan is included in a Direct Consolidation
Loan.
• Perkins Loans have a grace period of 6-9
months. When a Perkins loan is consolidated, any
remaining grace period is lost.
• Interest does not accrue when a Perkins Loan is
placed in deferment. Since a Perkins Loan is
included in the unsubsidized portion of a Direct
Consolidation Loan, borrowers are responsible
for interest that accrues throughout the
deferment period.
• Perkins Loans generally have a lower interest
rate but have a less flexible repayment period of
10 years.
page 6
CAN I CONSOLIDATE MY LOANS IF I AM
• CAN I CONSOLIDATE AN EXISTING
ENROLLED IN SCHOOL?
Yes and No. Effective for Direct Consolidation
Loan applications received on or after July 1, 2006,
borrowers who are enrolled in school cannot
consolidate loans that are in an in-school status.
These are loans that have not yet entered or used
up the 6-month grace period entitlement.
Borrowers still can consolidate loans that are in
grace, repayment or deferment. Borrowers can
add loans to an existing consolidation for up to
180 days after the Direct Consolidation Loan was
first disbursed. If more than 180 days has passed,
borrowers can apply for a new Direct
Consolidation Loan.
The new consolidation loan can include the
original Direct Consolidation loan and must
include another eligible outstanding federal
education loan.
EXAMPLE: A BORROWER WHO HAS EDUCATION
LOANS STOPPED ATTENDING SCHOOL FOR A
YEAR AND THE LOANS USED UP THE 6-MONTH
GRACE PERIOD AND ENTERED REPAYMENT. THE
BORROWER RETURNED TO SCHOOL AND
OBTAINED A NEW LOAN. WHILE ENROLLED, THE
BORROWER APPLIES FOR A DIRECT
CONSOLIDATION LOAN. THE DIRECT
CONSOLIDATION LOAN CAN INCLUDE THE FIRST
GROUP OF LOANS THE BORROWER RECEIVED,
BUT NOT THE NEWLY RECEIVED LOANS. ONCE
THE BORROWER LEAVES SCHOOL AGAIN HE OR
SHE CAN ADD THESE NEW LOANS TO THE
EXISTING CONSOLIDATION LOAN OR SUBMIT A
NEW DIRECT LOAN CONSOLIDATION
APPLICATION TO COMBINE THE ORIGINAL
CONSOLIDATION LOAN AND THE OTHER
REMAINING LOANS.
A Guide to Our Services
CONSOLIDATION LOAN?
Yes, under three conditions:
• Borrowers can consolidate existing
consolidation loans into a new Direct
Consolidation Loan if they include at least one
other FFEL or Direct Loan into the new
consolidation loan.
• Borrowers can consolidate a single Federal
Consolidation Loan if the loan is in default status
or has been submitted to a guaranty agency for
default aversion by the loan holder.
• Borrowers can consolidate a single Federal
Consolidation Loan if they intend to apply for loan
forgiveness under the Public Service Loan
Forgiveness Program.
CAN I CONSOLIDATE MY LOANS THAT ARE IN
GRACE?
Yes, Borrowers who consolidate loans that are in
grace may receive a lower interest rate on their
Direct Consolidation Loans if they are
consolidating variable rate loans. However, once
grace status loans are consolidated borrowers
lose any remaining grace period.
Borrowers receive their first bills within 60 days
after the new Direct Consolidation Loan is made.
The timing in which an application is submitted is
important:
• Loans first disbursed on or after July 1, 2006
have fixed interest rates. While borrowers with
fixed interest rate loans can consolidate while in
grace, there is no benefit to do so since the
interest rates for in-grace and in-repayment are
the same.
• Borrowers with variable interest rate loans
should apply for Direct Consolidation Loans while
page 7
their loans are in the grace status in order for
• records, they may want to consider another
them to receive the possible interest rate benefit.
Since repayment begins within 60 days of the day
the Direct Consolidation Loan is made, borrowers
should not apply too early in their loans' grace
periods; otherwise borrowers lose any remaining
grace period. For example, if a borrower's loans
are consolidated during the second month of
grace, they would begin repayment within 60
days, thus forfeiting the remaining portion of the
grace period.
Therefore, borrowers should wait until about
halfway through the 6-month grace period before
applying for a Direct Consolidation Loan.
What speci al conditions apply if I am in
repayment and just consol idating now?
Borrowers in repayment who want to consolidate
their federal education loans should continue
making payments until their loan holder notifies
them that their loans are paid in full.
CAN I CONSOLIDATE JOINTLY WITH MY SPOUSE?
No, Effective July, 1 2006 a married couple may no
longer obtain a Direct Consolidation Loan as joint
borrowers.
CAN I CONSOLIDATE A DEFAULTED LOAN?
Generally, federal education loan(s) in default
may be consolidated in a Direct Consolidation
Loan if borrowers:
• Agree to repay the loan(s) under either the
Income Contingent or Income Based Repayment
Plan. OR
• Make satisfactory repayment arrangements with
the current loan holder(s). If, before applying for
consolidation, borrowers who want to completely
clear the default notation from their credit
A Guide to Our Services
option: loan rehabilitation. Borrowers should
contact their loan holders to obtain more
information about this option. Borrowers cannot
consolidate defaulted loans under these
conditions:
• If a judgment has been issued against a
defaulted loan, it cannot be included in the
consolidation unless the judgment order has
been vacated (dismissed).
• If they are trying to consolidate defaulted Direct
Consolidation Loans and do not include at least
one additional eligible loan in the consolidation.
Note: Borrowers with defaulted FFEL or Direct
Loan Program loans may be liable for collection
costs incurred to collect the loans. If the holder of
the defaulted loan, which may be either the U.S.
Department of Education or a guaranty agency,
retains a collection agency to collect defaulted
loans, charges imposed by the collection agency
may be added to the amount borrowers owe. This
means that the amount of the Direct
Consolidation Loan may include collection costs
of up to 18.5% of the principal and interest
outstanding on the defaulted loan. For defaulted
Perkins Loans and health professions loans,
collection costs may equal as much as the amount
owed at the time the defaulted loan is paid off
through consolidation.
CAN I CHANGE REPAYMENT PLANS?
Yes. Most borrowers may change repayment
plans at any time. However, borrowers who are
required to repay under the ICR plan must make
three consecutive monthly payments before
changing to another plan. There is no limit to the
number of times borrowers may change plans. • A
borrower may change to the ICR plan at any time.
After the change, the borrower's repayment
page 8
 •
period will be a maximum of 25 years. If loans are HOW LONG DOES IT TAKE TO CONSOLIDATE MY
not fully repaid after 25 years of repayment, any LOANS ONCE I SUBMIT MY APPLICATION?
unpaid amount will be forgiven. The maximum The consolidation process generally takes 60- 90
25- year repayment period may include prior days. Using the Student Loan Education Center
periods of repayment under certain other can reduce the amount of time it takes to
repayment plans, and certain periods of consolidate a borrower's loan(s). Call today to
economic hardship deferment. The forgiven speak to a qualified Student Loan Advisor with the
amount may be considered taxable income. (The Student Loan Education Center for more details.
ICR Plan is NOT available if you have a Direct PLUS The consultation is free.
Consolidation Loan(s) made before July 1, 2006
and/or a Direct PLUS Loan(s). However, you are WHEN CAN I EXPECT MY FIRST MONTHLY
eligible to repay any Direct Consolidation Loan(s) PAYMENT TO BE DUE?
made on/after July 1, 2006 under the ICR Plan
Borrowers will receive an initial billing statement
even if it includes a PLUS Loan(s).)
from the Direct Loan Servicing Center within 60
• A borrower may change to the IBR plan at any days of the first disbursement of their Direct
time. After the change, the borrower's repayment Consolidation Loan. Payments are due monthly.
period will be a maximum of 25 years. If loans are
not fully repaid after 25 years of repayment, any
unpaid amount will be forgiven. The maximum
25- year repayment period may include prior
periods of repayment under certain other
repayment plans, and certain periods of
economic hardship deferment. The forgiven
amount may be considered taxable income. If you
choose to leave the IBR Plan at any time, your
account will be placed on the Standard
repayment plan. You cannot change to any plan
other than Standard at any time after being on
the IBR repayment plan.

• A borrower may change to another plan as long

as the new plan has a repayment term that is
longer than the amount of time the borrower has
already spent in repayment. The new repayment
term is determined by subtracting the amount of
time a borrower has spent in repayment from the
term allowed under the new plan.

A Guide to Our Services page 9

 10

“Cause of Action” Claim -

Student Loan Discharge
Borrowers may be eligible for forgiveness of their federal student loans if
they attended a school that misled them or engaged in other
misconduct in violation of certain laws.

This type of loan forgiveness is called “Cause Of Action,” Learn more in

the sections below to see whether you may qualify.

A Guide to Our Services page 10

 11

Who Qualifies for Cause of Action to Repayment Loan Forgiveness?

Under the law, you may be eligible for the Cause of Action to repayment of your federal student loans that you
took out to attend a school that misled you, or engaged in other misconduct in violation of certain state laws.
Specifically, you may assert Cause of Action- Discharge by demonstrating that the school, through an act or
omission, violated state law directly related to your federal student loan or to the educational services for
which the loan was provided. You may be eligible for Cause of Action- Discharge regardless of whether your
school closed.

If you are eligible to receive federal student loan forgiveness, you may be able to have all or part of your
outstanding federal student loan debt forgiven, and you also may be ​reimbursed for amounts you have
already paid on those loans.

You will only be eligible for this type of federal student loan forgiveness if your school’s misleading activities
or other misconduct directly relate to the loan or to the educational services for which the loan was
provided. You will not be eligible for this type of forgiveness based on claims that are not directly related to
your loan or the educational services provided by the school. For example, personal injury claims or claims
based on allegations of harassment are not bases for a Cause of Action- Discharge claim.

How does it work?

Provisions in the law called "defense to repayment" or ​(Cause Of Action)​ allow borrowers to seek loan
forgiveness if they believe they were defrauded by their college under state law. This provision has rarely
been used in the past. Now, the Department is taking unprecedented action to create a streamlined process
that is fair to students who may have been victims of fraud and that holds colleges accountable to taxpayers

• For-profit students pay more up front: On average, attending a two-year for-profit institution costs a
student four times as much as attending a community college.
• They borrow more often: More than 80 percent of students at for-profits borrow federal student loans to
pay for college, while less than half of students at public institutions do.
• And they default on their student loans at disproportionately high rates: Ultimately, students at for-profit
colleges represent only about 11 percent of the total higher education population but 44 percent of all
federal student loan defaults, a clear sign that some of these colleges were not preparing students for
good jobs.

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 12

Department of Education's' Discovery

The Department began tightening oversight of the college's practices and uncovered misrepresentation of its
job placement rates. The Department acted to hold Corinthian accountable and ensured students pursuing
their education did not face abrupt disruption while enforcement action was being undertaken.

• Extending debt relief eligibility to groups of students wherever possible: In order to receive loan
forgiveness under a "defense to repayment," students must assert that a college's actions violated state
law and affected their provision of educational services or their federal loans. Wherever possible, the
Department will rely on evidence established by appropriate authorities in considering whether whole
groups of students (for example, an entire academic program at a specific campus during a certain time
frame) are eligible for Cause of Action- Discharge relief. This will simplify and expedite the relief process,
reducing the burden on borrowers.

For example, after analyzing the Department's findings in its investigation of Heald College and relevant
California law, the Department has determined that evidence of misrepresentation exists for students
enrolled in a large majority of programs offered at Heald College campuses between 2010 and 2015.
Specifically, the Department has determined that students who relied on misrepresentations found in
published job placement rates for many Heald programs qualify to have their federal direct student loans
discharged. Students can have their loans forgiven and receive refunds for amounts paid based on a simple
attestation

A Guide to Our Services page 12

 13

Relief Loan Forgiveness for Corinthian Students Whose Schools Closed on April 27, 2015

School Closure VS. “Cause of Action- School Discharge”

The closed school discharge is available if you attended a school that closed while you were enrolled or if you withdrew
120 days ​before​ the school’s closure.]

The​ closed school discharge form ​states that this provision only applies if the program you complete at another
school is the ​same or comparable to your program of study​ at the closed school. You should be eligible if you enroll
in the same program at another school, but do not transfer any credits from the closed school.

A closed school discharge​ normally only applies to students who withdrew (without completing their program)
within 120 days of the school’s closing date, or were attending when the school closed.​ But for Corinthian students,
the Secretary of Education has extended the time frame to include any Corinthian student who withdrew from one of
its closed schools on or after June 20, 2014. THIS IS THE ONLY EXCEPTION FOR THE ABOVE STATEMENT OF
CORINTHIAN SCHOOLS

If you were attending any of these closed schools on​ April 27, 2015​, or ​withdrew​ from these schools ​after​ ​June 20, 2014​
, you have two options:

1.​ ​Apply for a ​closed school loan discharge​; or,

2.​ ​Transfer earned credit to another institution to continue your education in a comparable program.

Borrowers who attended Corinthian Colleges (Everest, Heald, and WyoTech) with a first date of
attendance between​ July 1, 2010 and Sept. 30, 2014 ​and are seeking ​federal student loan​
forgiveness through ​(Cause Of Action)​ should complete a Corinthian-specific application.

The Department has worked to rapidly develop a streamlined process for getting debt relief to Corinthian students. The
Department's aim is to make the process of forgiving loans fair, clear and efficient—and to ensure that students who
are eligible to participate know about this opportunity.

Some Corinthian schools closed down, while others were sold but remain open under different ownership. The
announcements today are for:
● Corinthian students whose schools have closed down.
● Corinthian students who believe they were victims of fraud, regardless of whether their school closed

A Guide to Our Services page 13

 14
Stopped Collections Status
Within the application, you may select to have
your federal student loans placed into
forbearance or stopped collections status while
your application is reviewed by ED. If you
choose for your loans to be placed into
stopped collections status, shortly after the
Department of Education receive’s your claim,
your loans will be placed in stopped collection
on any of your loans while your claim is
evaluated.
By completing and submitting a Cause Of
Action- Discharge application, you may have all
of your federal student loans in repayment
placed into forbearance status and have debt
collections on any federal student loans in
default stopped (“stopped collections status”)
while ED reviews your application.
• For federal student loans that are placed
into stopped collections status, the
federal government or debt collection
companies will stop attempting to collect
on the loan, including by not withholding
money from your wages or income tax
refunds.
• Which of my federal student loans are
eligible to go into forbearance or stopped
collections status?
• I Initially, if you choose forbearance or
stopped collections status, it will affect ​all
of your federal student loans that are
owned by ED and are being serviced by
your federal student loan servicer,
including loans that are ​not eligible such as
(1) loans taken out to attend another
institution, and (2) any loans you have for
which you are not asserting claim. If you
select forbearance and you have
commercially held FFEL Program loans, ED
will request forbearance on your behalf.
A Guide to Our Services info@studentsservicecenter.com
What happens if my claim application against the
school is successful?
A. Your federal student loans related to your application
may be discharged partially or completely. If you receive a
partial ​discharge​, you will be responsible for repaying any
amounts that are not discharged through claim (including
any interest that accumulated). Also, at that time, the
forbearance or stopped collections period for any of your
other federal student loans will end. You will be
responsible for repaying those other loans, ​if applicable,
including interest that accrued during the forbearance or
stopped collections period.
​ What happens if my claim application against the
school is denied? A. You will not receive a discharge of
any of your federal student loans and the forbearance or
stopped collections period will end for all of your loans.
You will be responsible for repaying these loans, ​including
interest that accrued during the forbearance or stopped
collections period
Q. Is it ever possible to extend the requirement that I
must have withdrawn from the school 120 days
before closure? A: Yes. The government may extend this
period if exceptional circumstances apply. For example,
the Department of Education has extended eligibility to
Corinthian borrowers who withdrew on or after June 20,
2014 from a Corinthian school that closed on April 27,
2015.
Q.​ Can the government deny the closed school
discharge if my school closed but I completed the
program at another school? A: Under current
regulations, yes, but only if you complete the same
program because you transferred one or more credits
earned at the closed school to another school or if the
two schools had a written “teach-out” agreement
allowing students to complete their courses at another
school after the original school closed.
Q.​ What if I transfer credits to a different school for
a different program of study? A: As stated above,
you are only ineligible for closed school discharge if
you complete your program through a teach-out at
another school or if you complete the program at
another school through the transfer of one or more
credits from the closed school. The closed school
discharge form states that this provision only applies
if the program you complete at another school is the
same or comparable to your program of study at the
closed school.
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 17

Thank You
A Guide to Our Services page 17