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My Court Reporting School Closed How Do I Eliminate My Student Loans? – Maria

“Dear Steve,

Years ago beginning back in 1994, I took out loans for court reporting school. My first school closed in 1996- another school agreed to sign us for a discounted rate and flat rate fee and with the condition with could attend school no matter how long it took to complete without additonal charges.

So, I have additional loans from 1993-1996. However, do to finances, being a single parent and so on I became a night student from then on. While it is true, I took several leaves of absences due to family situations, sometimes having to work two jobs and attending night clases, I was still enrolled in good standing.

I was still a night time student in 2006 when my school closed. I had just passed into the 200 speed classe, bought a brand new mira electric, paperless machine, but still was not able to complete the program because of the school closure.

Another existing school (at least an hour and a half away ) was the only other option. They would not accept my academic credits even though I had recieved A’s and B’s. I,of course, could get no more financial aid, and did not have the (at that time), $12,000 to pay complete my court reporting training.

I also, looked into on line schools, and they did not accept students past the 160’s speed, and I couldn’t afford them anyway. There were no other options- I was stuck! I consolidated my loans in 2007, and began making repayments, still looking for ways to complete and use the training and time I had invested in the court reporting program- but there was nothing.

My loans went into repayment and I consolidated and made payments so as not to go into default. I moved out of calfornia for a supposed better job offer- which fell through. Moved back to california , after prompting from my old boss, but since I worked as a dispatcher for an engineering firm and work has been slow in construction- that fell through also! I have been unemployed for a couple of years now, and also had to take care of my mother who has alzheimers (there was no one else availabe at that time).

I got into an ROP (which is free) for medical assisting, My loans have been in deferment, but that is ending and after I was first told I could get an in school deferment- am now being told my classes do not qualify beause they are through the state – not federally approved????

I owe $70,000 in student loans and am told I cannot get these discharged (the lender is great lakes) because they said I completed my education- but I did not both schools closed. What can I do? Also, each time I called to check on my loans to make sure they were still in deferment- I would ask if there was a time limit on getting them cancelled or forgiven because of school closure I was told that there was no tme limit !

How can I get my school loans discharged or forgiven because of school closure and not being able to complete the program ? I know several people who were able to do this, even though they waited two or three years to being the process. I am supposed to begin making payments of almost $500 per month, and I am sill unemployed and only half way through my ROP class for medical assisting? I do not want to go into default. I have good credit and have always made bills on time. What can I do?


Dear Maria,

There are a couple of issues here. First, no school guarantees you a degree. You pay for individual classes and the completion of those classes according to the schools criteria can result in a degree.

One argument of lenders is going to be that the classes that you attended and finished you received the benefit of those classes.

However, if your loans are government backed you may be able to have your loan discharged if the school closed while you were enrolled.

Please bear in mind that you are not eligible for the discharge if you are completing a comparable educational program at another school. If you complete a comparable program of study at another school after your loan is discharged, you may have to pay back the amount of the discharge. If you haven’t received a diploma or certificate but have completed all of the coursework for the program, you’re not eligible for the discharge.

To see if your loans may qualify to be discharged, click here and contact the representative listed for your area.

Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.


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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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