Closed School Discharge Debt Articles

Regency Beauty Institute Closes Doors Abruptly – What Now Students

Written by Steve Rhode

Regency Beauty Institutes operated 79 schools in 19 states but on September 28, 2016 they announced after 50 years in operation it was closing immediately.

Regency was a school approved for federal student loans so right now a number of students are left in limbo.

And the school gave current student just two days to gather personal items and then they say they will not be open again at any other time.

The school has made plans to help students get documentation and transcripts. The say, “There is no need to make a request for your final transcript. We are mailing every current student (including any student who was enrolled within the last 120 days) his or her final transcript. These mailings will begin immediately, and we anticipate that all will be complete in the week of October 3.

We also plan to both: (1) provide a copy of each student’s final transcript to the cosmetology board (or state higher education authority, if applicable) in your state; and (2) engage a records management company who can administer student transcript requests in the future. Once this records management company is chosen, the contact information will be posted on this website.”

If you are a student and you receive any documentation from Regency, be sure to save all of those papers in a place that you will never lose them.

Students who have federal student loans have two choices on how to deal with the closure of the school.

If you were attending Regency when it announced its closure on Sept. 28, 2016, or if you withdrew from Regency on or after May 31, 2016, you have two primary options:

  1. Apply for a closed school loan discharge.
  2. Transfer earned credits to another institution to continue your education in a comparable program.

Be sure you are aware of each of these options. If you select to transfer to another school in a similar field of study you will lose the ability to have your federal loans forgiven in the closed school discharge program.

READ  Great Checklist On What to Do if Your School Closed and You Have Federal Loans

If you want to purse having your federal student loans forgiven through the closed school discharge program, you can talk to your loan servicer about how to proceed or you can complete this form and send it to your loan servicer.

If you opt for the closed school discharge you not only will not need to make any additional loan payments but you will be refunded all the loan payments you already made.

If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.




About the author

Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

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