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Student Loan Questions: Information for ITT Tech Students

By U.S. News & World Report

With the recent, sudden closing of all ITT Technical Institute locations, the Student Loan Ranger has been receiving many worried emails from current, recent and not-so-recent students wondering how to move forward. This month’s mailbag will focus on those issues.

Below are some recent messages we’ve received. The following questions are real but may have been edited for grammar or clarity. If you have a question the Student Loan Ranger can help with, please reach out to us at studentloanranger@usnews.com.

[See how to avoid turning into a scary student loan statistic.]

Bogus Degree?

Q: I have a bogus degree from ITT and about six or seven thousand dollars in student loans. Can I get some help? How do I prove they committed fraud against me? The labs hardly ever worked properly and that is the “hands-on” they boasted about and promised. I gave up looking for a job when my bachelor’s degree didn’t help me get a decent job.

A: I’m sorry to hear about your college experience. At this time, you would not be eligible for discharge based on the situation you describe.

In general, unless the school actually makes such a promise, there is no guarantee of employment or salary threshold when you take on debt to attend school. Failure to obtain a job, or a certain type or level of job, is also usually not a reason for loan forgiveness unless the school promised such a thing.

The exception to that is if the school violates state consumer protection laws, in which case federal student loan borrowers can file for a borrower defense to repayment discharge. Although several students and the Massachusetts Attorney General’s Office have filed lawsuits alleging such violations against ITT, as of this publication, the school has yet to be found guilty of such abuses in court or by another government agency.

[Learn three ways a student loan could be discharged.]

With that said, keep an eye on this space because changes are coming. As we discussed this past summer, the Department of Education is working on expanding the eligibility criteria for borrower defense to repayment discharges.

If the final regulations are anything like the draft and you, the Department of Education, a court or another agency can find proof that ITT misrepresented its program to you, it’s possible you might be eligible for full or partial discharge of your federal student loans if you consolidate them after the new rule takes effect July 1, 2017.

One last caveat is the statute of limitations, which based on the draft regulations, will apply in some cases to amounts that the borrower already paid either voluntarily or involuntarily.

Loan Discharge or Finish School?

Q: I am — or was — an ITT student who was attending when it closed. What do I do now? I’ve heard all my loans will be forgiven.

A: What do you want to do? I hope it’s to complete your degree or certificate.

While it may be tempting to pursue student loan discharge, which it sounds like you’d be eligible for under closed school provisions, remember that you can’t get back the time you spent racking up those credits or hours.

[Here are three times college closings can affect student loan repayments.]

If you discharge your loans through closed school discharge, that means you cannot use those credits toward a comparable program of study, so — essentially — you’ll have to start all over again. Studies show that students who complete their degree have fewer problems with student loan repayment and other financial achievements.

To determine which schools are accepting ITT credits and how to obtain your transcript, check out the ITT information site that the Department of Education is hosting and frequently updating.

Incidentally, the Student Loan Ranger recommends that every ITT student, regardless of when they attended, look into obtaining a copy of their transcript now in case you need it down the line.

To be eligible for closed school discharge, you would have had to have been attending — or on an approved leave of absence — within 120 days of the school’s closure date of Sept. 6, 2016, and unable or unwilling to transfer your credits to a comparable program. If you decide to pursue this discharge, you can apply directly through your loan holder.

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Student Loan Questions: Information for ITT Tech Students originally appeared on usnews.com

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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