Studying is a priceless thing. However, whatever money you spend on education is an investment rather than a cost. However, when your institution closes unexpectedly, as Harrison College did, things start to go wrong. Some schools engage in dishonest or improper behavior, leaving you unsure of what to do next. Alumni sometimes question the validity or value of their degrees or certificates from closed institutions.
Harrison College Lawsuit
When an Indiana district judge heard a settlement case in April 2020, the Harrison College lawsuit got started. Debt collectors and former Harrison College students filed the settlement lawsuit in January 2020.
The institution, together with its associates, allegedly committed fraud and breach of contract, the student’s accusations state. They prevailed in the case, and the judge ruled that loan forgiveness will be granted to students whose last day of attendance was September 1, 2018, or later.
Students whose accounts were sent to Key 2 Recovery for debt collection were also eligible for the student loan cancellation.
Harrison College Closing
The institution of Harrison College was formally shut down on September 1, 2018. The college offered the students a range of choices even without the Harrison College lawsuit application.
The closure of Harrison College was a tremendous setback, but students may use the teach-out program to transfer to a university offering a comparable degree. Additionally, the students might ask Harrison College for a discharge, which would pay off their student loans. (We’ll go into further detail about what occurs to student loans if a school closes later.)
Why Did Harrison College Shut Down?
They were furious and startled when Harrison College abruptly closed its gates without informing its students. The campus in downtown Indianapolis didn’t pick up the students’ calls, and they were unable to get an answer.
Additionally, the pupils met with college personnel but received no information or guidance.
What then led to Harrison College’s closure?
The institution’s staff received an email. Craig Pfannenstiehi, the board chairman, claimed that the institution has been experiencing financial difficulties for a number of years. Their little resources were insufficient to maintain the school as the financial strains grew more intense.
The outcome was the closure of the school.
If A School Closes, What Happens To Student Loans?
Many institutions and colleges have shut down, similar to how Harrison College did, putting its students in an unclear situation. What transpires thereafter with student debts if the institution closes? There are two things you can do if you have a lot of debt:
- Transfer your academic credits and sign up at another institution
- Get your enormous loans forgiven
You’ll have to pick one since you can’t do both. Let’s go over the various choices.
- Teach-Out Initiative
An arrangement between institutions known as a “teach-out program” enables you to finish your program of study. You can decide to continue with your course if your institution has a teach-out option.
However, you must be certain that the institution will live up to its promises and avoid becoming another closed institution.
- Switch to Another School
There are other colleges you may attend if you don’t like Harrison College, your current school. You must ascertain whether your school has agreements in place with other organizations to facilitate the move. Make sure you get everything you need if your school offers that choice. It’s not optimal to incur unnecessary risks or problems. Find the colleges that offer the programs you require, along with the legitimacy and dependability to assist your long-term objectives.
- Participate in The Harrison College Closing And Credit Assessment
We advise you to pay close attention to any announcements made by the school, especially those regarding people looking through your transcripts. When examining your transcripts, you should participate and don’t be shy about asking questions or performing a second look.
You can request a second review if you believe the board overlooked something.
Discharging Harrison College Closing Student Loans
The following conditions must be met in order for you to qualify for a discharge of closed student loans:
If the institution closed while you were enrolled or on a leave of absence that was authorized.
The closure took place 120 days after you discontinued your studies before finishing them fully.
As previously stated, if you continue your study elsewhere, your student debts won’t be forgiven. To request a student debt discharge, get in touch with your federal student loan servicer. Your loans will be forgiven within three years if you meet the requirements.
Conclusion on Harrison College
It came as a surprise when Harrison College closed. It doesn’t, however, spell your demise. However, sorting through the several possibilities covered in this tutorial can be a difficult task. You would need to select student loan specialists to guide you through the scenario.