How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Dwayne B. Your Own Question
Dwayne B.
Dwayne B., Attorney
Category: Legal
Satisfied Customers: 32368
Experience:  Began practicing law in 1992
11068102
Type Your Legal Question Here...
Dwayne B. is online now
A new question is answered every 9 seconds

I graduated from ITT Tech in 2005, but I was attending the

Customer Question

Hello I graduated from ITT Tech in 2005, but I was attending the school the FBI had an investigation on the campus I was going to and the school was closed. Now that ITT Tech is closed for good, can I get my student loans discharged?
JA: Because education law varies from place to place, can you tell me what state this is in?
Customer: Houston, TX
JA: Has anything been filed or reported?
Customer: on my behalf, no
JA: Anything else you want the lawyer to know before I connect you?
Customer: no that is all
Submitted: 3 months ago.
Category: Legal
Expert:  Dwayne B. replied 3 months ago.

Hello and thank you for contacting us. This is Dwayne B. and I’m an expert here and looking forward to helping you today.

As a general rule, the answer to that is "no", not unless the loans were made by the institution itself. In other words, if ITT loaned you the money then you could, if it was borrowed from some other lender then it isn't instantly dischargeable.

If you can find a copy of all of your lending paperwork then that often has the process that must be used to get a loan "forgiven" due to issues like this. If you go through that process there is a possibility that you could get the debt discharged or at least shifted onto ITT and its owners.

WHat I'd suggest is visiting with a local attorney that does consumer law or bankruptcy law and hiring them to look over the paperwork or, if you don't have it, to get a copy of the paperwork and review it. Then, once you see what your paperwork says, you will know what the next step is going to be.

There is a general discharge available for school loans made through schools that were closed for fraud. However, there are limitations on that program.

You can read more about that program at the government website https://studentaid.ed.gov/sa/repay-loans/forgiveness-cancellation/closed-school but the requirements which must be met are:

You may be eligible for a 100% discharge of your Direct Loans, Federal Family Education Loan (FFEL) Program loans, or Federal Perkins Loans under either of these circumstances:

Your school closes while you're enrolled, and you do not complete your program because of the closure. If you were on an approved leave of absence, you are considered to have been enrolled at the school.
Your school closes within 120 days after you withdraw.

You are not eligible for discharge of your loans if your school closes and any of the following is true:

You withdraw more than 120 days before the school closes.
You are completing a comparable educational program at another school
through a teach-out agreement with the school,
by transferring academic credits or hours earned at the closed school to another school,
or by any other comparable means.
You have completed all the coursework for the program, even if you have not received a diploma or certificate.

It's been my experience that most people don't meet these requirements, which is why most people have to go back to the paperwork and look for an "out" in there. One possibility if the school sent you to the lender is that you can claim some type of collusion between the two and get a court to order that you don't owe the money because of the fraud.

You can find a lawyer to assist you by going to www.lawyers.com and in the section for Area of Practice enter Bankruptcy or Consumer Law. Either of those will have the skill set you need.

If your question has been answered then I'd offer my best wishes to you and ask that you please not forget to leave a Positive Rating so I receive credit for my work.

Of course, please feel free to ask any follow up questions in this thread. I want to be sure that all of your questions are answered.