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Student Loan Forgiveness- School Closure

Started by Bre, October 26, 2019, 06:39:23 pm

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Bre

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?

TheCollegeInvestor

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.

Bre

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?

TheCollegeInvestor