Thread regarding Education Management Corporation layoffs

When a campus closes and you are currently enrolled, it is important to know that the school will try to offer you a “teach out” as a way to complete the program you are enrolled in. In the case of a campus closure, the school will likely try to push you to transfer to a different for-profit school where your credits will transfer. Your credits will not transfer to a legitimate public college, unless that school has agreed to make special arrangements for students from a closed school. Accepting a transfer or a “teach out” is completing the program and disqualifies you for debt discharge according to the Department of Education. The Department of Education’s website also proclaims:

“You may be eligible for a 100% discharge of your Direct Loans, Federal Family Education Loan (FFEL) Program loans, or Federal Perkins Loans under

either of these circumstances:

● Your school closes while you're enrolled, and you do not complete your program because of the closure. If you were on an approved leave of absence, you are considered to have been enrolled at the school.

● Your school closes within 120 days after you withdraw.”

You should be careful not to sign any documents with the school agreeing to continue your program with them as a “teach out”, or to transfer your credits to other locations or schools to complete your degree. If you agree to a teach out, you may be waiving your eligibility for a discharge of your loans.

You are better off fighting for a FULL loan discharge. What former students have learned, and what the Department of Education is not telling current students, is that if your school closes while you are enrolled you have a right to file for a closed school discharge instead of accepting a teach out.

MPN = master promissory note

Another issue I have come across is that I have overheard financial aid calling stipends "refunds." Not exactly transparent.

You are inaccurate in stating that students understood the amount of loans or repayment schedules. I have seen repayment schedule paperwork that states "low payments" of around $100 per month. In reality, students have loan repayments, in some cases, that rival the costs of mortgage payments. I am extremely grateful to have finally left EDMC amd to have warned as many students as I could to leave as well.

The "I am Ai" activists have been a blessing in an otherwise very dark chapter of my life. I am rooting for them to get the schools shut down and receive the justice they deserve.

I'm dying laughing at the people who are still trying to peddle the "these stupid teenagers knew what they were signing up for, you can't get anything for free, blah blah bootstraps speech" thanks to our activism we have changed the stigma on former for-profit students, the public agrees we were completely swindled by you and we were, you f---ing lied about everything these "schools" had to offer and I can't believe you still think we're all that stupid to keep believing we're at fault. Every time you blame the people you enrolled it makes me want to see you lose your job sooner. Go ahead. Keep blaming us. The farther you dig your hole the bigger a drop it is for you. The EDMC koolaid isn't even fresh anymore why are you still drinking it? It's done. EDMC is dead. Why don't you see that?

It's great to see there are still lifers perpetuating the issue with EDMC - misleading approaches. I can tell you, and assure you, that I have heard and watched admissions folks blatantly mislead students to cover up the cost of the education. In addition, only a select few admissions reps will discuss stipends in a negative way. Many of them use it as a crutch or selling point for the program.

And on the backend, you have tons of financial planners that have no idea what they're doing and as a result, students literally pay the price. I've watched planners package students and toss them all into 2-3 quarters so that they could get through the process. Know what happens in the students final year? Everything needs paid out of pocket.

To answer your question, you could join the fight and seek forgiveness. But, it will probably be similar to the "forgiveness" deal EDMC worked out with their buddies in the DoE/Attornies General offices. The students ONLY had their debt to EDMC cleared. To explain - let's say you signed up for a $100K program and took $90K in financial aid...you would only have that $10K forgiven. You'd still owe sallie mae that $90K.

It's all smoke and mirrors.

Arbitration clause to help facilitate ensure fraud and no recourse from ripped off students, vets, parents, mental I'll and disabled.

@HK3Vjnw-jav, what's an "MPN"?

I have a student right at this moment that isn't enrolled and is being charged. Hmmmm....who's the liar?

Actually students are told how much in terms of loans they borrow. They are given the option to take the full amount if they want a stipend but are directed towards not taking a stipend. The people saying they weren't told or the school took out loans without them knowing are liars. That's a fact. The simple point is they are told, they ignore it because they're going to school which will solve everything, and then are somehow surprised when they see they have to pay it back. This is despite speaking with a finance counselor that goes over details, completing entrance counseling that goes over yearly cost, completing the master promissory note which tells them they're responsible to pay them back, completing a new FAFSA every year that sends a confirmation page with loan amounts, and completing and enrollment agreement that outlines total cost. The schools cannot take out loans in the student's name without the student's consent. Anyone saying they were never told us a liar and willfully ignored any warning given or information stated about cost and paying back.

@HK3Vjnw-qob , if you buy a lemon, you are entitled to legal recourse. The educations received at these schools are lemons. So, you are just an idiot, and clearly don't believe in the free market you seem to think you believe in. Free market capitalism relies on consumer recourse. It isn't about getting something for "free." It is about getting what was paid for, which is not what students got. You are also stupid because if you don't want your car, you can get it repossessed if you decide not to pay. You can give the car back to the dealership. Sure, it is a mark against your credit, but you are still able to get out of the loan. Your argument is weak at best. There are consumer protections for car buyers. There aren't consumer protections for these dubious and nefarious loans. As for "you signed the loans. Get over it..." actually, most students did not sign the loans. They signed an MPN and the schools then took out whatever loans they wanted, without adequately informing the consumer (students) of the terms or the fact that the school would continue to take out loans on their behalf without notification. There is massive fraud involved in the loans that were taken out. Fraud is fraud, so perhaps it is you who should get over it and face the fact that your job is a sham.

Correction, if you are an EDMC student, you can join "I Am Ai"......................................................https://www.linkedin.com/pulse/edmc-keeps-art-institutes-students-staff-dark-dahn-shaulis?trk=mp-author-card

@HK3Vjnw, you may be able to have your debts forgiven. You have to file a "defense to repayment" claim with the US Department of Education. About 20,000 students have file claims so far and about 2000 have gotten relief so far. You should also consider joining "Deceived By Devry" but you'll need to contact me for more information............................................................... https://debtcollective.org/defense-to-repayment

The schools don't have anything to do with loan forgiveness, that the federal government. You idiots want everything for free. Hey, I want my car loan forgiven because I don't like my car now that I bought it.

You signed the loans. Get over it and cough up. You shouldn't have been so gullible.