Do I Still Have to Repay Student Loans if the School Closed and Wasn’t Accredited? – Sasha


Dear Steve,

My boyfriend graduated from Brooks Institute in 2009. While attending he signed up for student loans, private and federal. They presented themselves as an accredited school. It turns out they are not accredited under Regional Law which, basically they are a vocational school. And the school has since closed down.

He has never defaulted on his loans but never able to make a dent. The loans have grown to $125000. Firstly, he does not make enough to pay that off and since his school is not a qualified education institution the loans are not qualified education loans. (I learned a lot of this on your site) Thank you for the info.

My question is if you can recommend whom we should contact to assist us in having the private loans fully discharges. We called a lawyer in the past and they knew nothing. We basically are looking for a good lawyer referral.

Thank you. I appreciate any information you can send.



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Dear Sasha,

When it comes to the federal student loans, you should look at the closed school discharge program and see if that applies to his specific situation.

When it comes to hunting for a local bankruptcy attorney who has experience with these student loan issues, you’ll just have to hunt around. It’s a new area and many don’t have experience with it yet.

One place you can look for an attorney who knows some basics about student loans, is here. However, they may not be a bankruptcy attorney but may be able to guide you to one.

If the school was not Title IV eligible then you’d have an accreditation basis for making the claim but if the school was eligible for federal student loans then they would have been Title IV eligible.

According to this page and this page on the Wayback Machine from 2009 it appears the school was eligible for federal loans at that time.

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Damon Day - Pro Debt Coach

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