Local law students who are saddled with student loan debt are in for some relief after the Florida Coastal School of Law announced the move.
If you attended the Florida Coastal School of Law, you might be eligible for loan forgiveness. Last year, the school closed after its application to remain in the federal student loan program was denied. According to the Education Department, the school took advantage of students by enslaving them in an endless cycle of debt. There may now be a way out of those loans.
The U.S. Department of Education found the school’s failure to follow the set fiduciary standards on the issuance of student loans. Some of the students with a running facility in the school are not eligible, leading to burdensome loans.
The Jacksonville law school had earlier claimed the move was a false narrative meant to destroy the school.
What Now? A Detailed Update on Florida Coastal School of Law
Student loan funds delayed went from a week to a nightmare for many students. With the delay, the school wasn’t able to handle the students’ expense stipends. Students were concerned about whether their degree would be recognized due to the funding delay. Multiple student organizations gave a helping hand in the matter.
Nonprofit status has been rejected after seven months. The professor, who was also the school’s dean, resigned, citing personal reflection.
Currently, the school says there’s some improvement with the new leadership.
Some of the students are claiming damages worth $500,000.
New Proposals from the Biden Administration
A new proposal from Biden will help forgive the students’ debts.
Details of the proposals would include:
- If a student’s school cheats them out of money or if the school shuts down, their loans should be forgiven.
- Limit the methods by which loan repayment plans can collect interest.
- Strengthening the Public Service Loan Forgiveness Program
Under the borrower defense program, an applicant may be able to get all or part of their will to be forgiven if they can demonstrate that they attended school because they were told false information about the job prospects for graduates.
Who Will Benefit from the Borrower Defense Program?
By sending your application, you’ll be one step ahead. The worst part is that your application is denied. Second, the current administration would like to reduce the financial burden of student loans without resorting to a generalized executive order that would turn off approximately half of voters. In addition, the current administration has, on a number of occasions, provided relief that is specifically targeted. Those individuals who do not have the necessary paperwork can make use of the resources that are available. For instance, there is a group of people who share documents with one another that other people can then use to supplement the defense applications that they have submitted for their own borrowers.
Finally, it’s a good idea to apply as soon as possible. Since the department has 36 months to respond, your application could be reviewed in 2025 by a new administration that believes you should pay off your loans faster.