The Student Loan Debt Forum | The College Investor

Student Loans => Student Loan Forgiveness => Topic started by: Bre on October 26, 2019, 06:39:23 pm

Title: Student Loan Forgiveness- School Closure
Post by: Bre on October 26, 2019, 06:39:23 pm
In 2012, the college I was attending was going under legal matters and eventually filed for bankruptcy. I was one of the students in the very last class there. I know the Nursing program in which I was originally enrolled in, I was short a couple of classes that weren't offered there. I believe they switched my program to General Science so I would be easier to get my degree. I remember being able to walk that May, and that June the school filed for bankruptcy. I ended up applying to a similar program at another university, however, I was still short a few classes. I say this because I'm curious as to if I'm eligible for student loan forgiveness through school closure.  If so, my biggest concern would be the tax implications. Currently I'm on the Standard Payment Plan & so far, including this year, I've made each of my payments. Would what I've paid thus far still be eligible as a tax write off, and the remaining be eligible for forgiveness?
Title: Re: Student Loan Forgiveness- School Closure
Post by: TheCollegeInvestor on October 27, 2019, 04:19:54 pm
No, since you were able to transfer and graduate, you're not eligible for forgiveness due to your school closing.

You may still be eligible for loan forgiveness, but it would be due to your employment status, specifically if you're a nurse at a non-profit hospital or practice. That could potentially qualify you for Public Service Loan Forgiveness (https://thecollegeinvestor.com/22857/public-service-loan-forgiveness/).
Title: Re: Student Loan Forgiveness- School Closure
Post by: Bre on November 01, 2019, 09:33:45 pm
I didn't end up pursuing nursing, but however a different medical program - which I didn't completely transfer to until 2013. That year in between I only registered for four classes I couldn't finish from my previous college. Do that change anything?
Title: Re: Student Loan Forgiveness- School Closure
Post by: TheCollegeInvestor on November 02, 2019, 03:16:01 pm
No sadly, that doesn't change anything.
Title: Re: Student Loan Forgiveness- School Closure
Post by: gharold on December 22, 2019, 03:18:09 am
PSLF is based upon who you work for not the job that you do.
One of the key requirement for PSLF is 120 conseceutive student loan payment.
You mention medical career affiliation. Many states offer STEM PSLF programs with less restrictions.
Title: Re: Student Loan Forgiveness- School Closure
Post by: TheCollegeInvestor on December 22, 2019, 09:21:51 pm
Note: PSLF doesn't have to be consecutive. Just have to get to 120 payments.