Do You Know About The Art Institute Lawsuit? Here Is An Informative Guide For You!

  • The educational management corporation was proven to have violated the protective laws, due to which they got accused. They also had to admit that they were engaged in implementing strategies violating US federal law. 
  • And as a consequence, the Art institute lawsuit had to agree to forgive the compensation amount of around $100 million in the name of student loan debts. This is excellent news for the students who can file for receiving the claims under the borrower’s defense policy against repayment.
  • This policy is a very massive help for the students who had taken student loans to be able to attend school. Now, they can qualify for a $200 million settlement and eliminate all the worries of bearing heavy loan amounts.

Two Methods to Discharge Loans from Art Institute

There are two ways through which the art institute students can apply for student loan forgiveness. They are: 

  • The borrower defense to repayment program
  • The closed school loan discharge program

It would be best if you were cautious enough to decide which program from the art institute lawsuit fits you the best and can yield a good chance of getting rid of the heavy burdens of a loan.

Let’s discuss these programs in detail so that you can make an effective decision and improve the odds of making the situation better. 

Discharging Art Institute Lawsuit under The Borrower’s Defense Policy against Repayment

  • This program was designed to help the people who were found to be crushed under the heavy burdens of repaying loan amounts. They had taken the student loans to attend the schools, which forcibly convinced them to take the loans. 
  • All the former students who took the student loans to attend one of the schools of the art institute are eligible to qualify for the borrower’s defense program against repayment. This program offers a complete student loan forgiveness plan to the students. It is one of the best opportunities to wipe out the burden of student loans, as the benefits of the art institute lawsuit are legitimate. 
  • It holds a perfect chance that you will be able to have your student loans forgiven entirely.

Checking the Results of Your Application

  • Unfortunately, many students have to wait for very long times to hear from the department of education as the number of students seeking loan forgiveness grows. Therefore, it is tough to expect the processing of applications promptly. 
  • However, this should not be a factor stopping you from applying for receiving the eligibility for this program. As you should remember, this can be your best chance of receiving the Discharge on your loans. 
  • Therefore, you should not feel discouraged if you don’t get to hear back from the department of education immediately. 

Discharging Art Institute Lawsuit by using the Policy of Closed School Discharge Program on a Student Loan

  • This is the second best strategy to wipe out the loans and receive art institute student loan forgiveness via closed school student loan forgiveness. This program is exclusively for the students about to finish their degree, but the school closed then. 
  • To qualify for this program, the student should either have been an active student at the art institute when it closed or left the school within 120 days of its closure. 
  • If you fulfill these two conditions, you would automatically qualify for your student loan to be discharged via the closed school loan discharge program. 

What are The Eligibility Requirements for Closed School Discharges?

  • Before you decide to receive eligibility for this program, read enough information and acquire every bit of detail regarding this program. This can help you avoid the consequences in the future, which might prove harmful during your application filling and hinder the process. 
  • As mentioned above, the student should be enrolled during the time of its closure or till the last 120 days before the day it got shut.
  • Also, the transferring credits do not validate your eligibility to benefit from this program. In other words, if you are currently attending some other school after your credits have been transferred under the art institute lawsuit. 
  • And, if a student has completed all their studies before the school, unfortunately, got closed down, and they are only left with their diploma yet, they are not eligible to bid for the closed school loan forgiveness program.

How can I Apply for Eligibility for a Closed School Program of Discharge?

  • You can successfully apply for the closed school student loan discharge program by going on the official and authorized government website, which is safe. 
  • The application form can be easily downloaded from there, and you can fill it out and submit it to your loan service provider. Your loan service provider is the organization to which you make your monthly loan payments. 
  • They will provide you with further details as each loan servicing company has different protocols which they follow. 


This short guide on the art institute lawsuit has provided you with good details of both your choices. These are the two ways to get your payback on compensation that you have made towards your student loans. Therefore, you should not wait too long and take the appropriate action without causing any further delay until these two choices are effective in action.

Asim Boss

Muhammad Asim is a Professional Blogger, Writer, SEO Expert. With over 5 years of experience, he handles clients globally & also educates others with different digital marketing tactics.

Asim Boss has 3377 posts and counting. See all posts by Asim Boss

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.