About Credit Balance Refunds Owed to Art Institutes

The U.S. Department of Education (ED) has learned that some students attending institutions currently under the control of a federal court-appointed receiver haven’t been given their credit balance refunds for the present term as needed by ED’s aid regulations. These schools are owned by Dream Center Education Holdings (DCEH) and include Argosy University (Argosy), The Art Institute of Pittsburgh, The Art Institute of California–Hollywood, The Art Institute of California–San Diego, The Art Institute of Las Vegas , and therefore the Art Institute of Seattle. ED expects the receiver, who has control of the institutions and their finances, to resolve this example .

These institutions are on the Heightened Cash Monitoring 1 (HCM1) payment method status since 2007. On Jan. 25, 2019, the faculties were placed on the HCM2 payment method to supply additional oversight of the institutions.

A school could also be placed on HCM1 or HCM2 as a results of a change in ownership or for compliance issues, like concern a few school’s administrative capabilities or financial responsibility. Once a faculty is subject to a receivership order, ED promptly places the varsity on HCM2 because a receivership typically results from serious financial difficulties.

On HCM2, Argosy and therefore the Art Institute locations must disburse loans and grants—including credit balance refunds—to students from the schools’ own funds before requesting a reimbursement of these funds from ED. HCM regulations don’t allow ED to supply federal student aid funds to the faculties for credit balances that haven’t been paid or to release those funds on to students.

The first student loan forgiveness program (The Closed program) is operational under the federal government’s long-standing intervention in the case of students from colleges that were closed down due to one reason or the other. Therefore, if your college closed down before you get the chance to finish your education, you may be eligible for this discharge program. Under this program, you must have left the school no more than 120 days before its closure, or you were still a student at the art institute before its close down.
These are the two general eligibility criteria for students under this program. Former students can obtain the art institute loan forgiveness under these provisions.

Who Is Eligible?
There is a lot of information online about the Closed Program. Students can, at times feel overwhelmed with an avalanche of information. Hence, we have simplified the information so you know what to look out for and determine if you can benefit from the art institute loan forgiveness program. To make the best of this information, please take your time to review it before carefully applying for the program.
As explained earlier, students get loans that they took during your study at The Art Institute written off if you meet two essential criteria.

If you happen to be a student at The Art Institute before its closure.
If you completed or left the school less than 120 days before the day it closed.
Apart from these two, there are two other minor requirements that you need to meet before you apply for an art institute loan forgiveness program. These are :

Students currently enrolled in another institution after the transfer of their credit do not qualify
Students who have completed their coursework prior to the closure of the school but are this Discharge program.
With these three requirements in mind, you can confidently determine your full eligibility if you happen to qualify for the program. We strongly encourage you to apply at the earliest and benefit from the loan forgiveness. Keep reading to know how to apply for forgiveness.

https://studentloansresolved.com/art-institute/