i heard something on it that it was a federal law that stated that a student loan lender must forgive the debt or loan if the school closes/files for bankruptcy,etc..
if you have a privater student loan thru American Education Services, and the school goes belly up in chapter 7, under the holder rule, must the remaining dept be forgiven, just like with federally backed loans?
is there a statute of limitations on when u must file a claim?
also my friend enrolled in a school and the tuition was 70k, the school arranged the financing thru thier prefered lender (AES), the school was given the private student loan money in 3 $33,333 installments over 3 months. he went to school for 7 months and didnt even get close to half way thru the course when he went back to the school after a weekend it had a sign saying the school closed and filed for chapter 7. the lenders didnt care the school closed and are after him for the 70k. he is wondering if the Holder Rule would apply to him in anyway? Im still a little confused on what to tell him.
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