Former Art Institute Student: Loan Forgiveness / Fake Debt?

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Topic Author
Cmpliance
Posts: 602
Joined: Wed Jan 08, 2014 11:41 pm

Former Art Institute Student: Loan Forgiveness / Fake Debt?

Post by Cmpliance » Fri Jul 08, 2016 6:49 pm

So my wife went to the Art Institute of Silicon Valley and in Spring 2014, she withdrew from the school with around $50K in student loans.

There are about $40K worth of Federal loans with Great Lakes and then around another $10K with what looks like just an amount with the Art Institute itself.

We've been paying on both loans (Federal & AI) and recently we stopped getting statements from AI. When my wife called, they said that the debt payback is now being managed by Williams & Fudge, Inc.

I ended up calling Williams & Fudge to get a better understanding on what's going on and he sent me an e-mail saying:
The office that handled student accounts for the Art Institute of California-Silicon Valley known as EDMC was closed. They transferred all of their accounts to Williams and Fudge, Inc. Your student account is not defaulted and there are no default fees. As to date there has been no interest on your balance. Your payment of $XXX will be an acceptable amount for your balance. The are no terms only pay arrangement or payment in full of the balance of $XXXXXX
So here is my question. This $9k doesn't seem like a true "loan" and my question is are we required to pay this back now that it is no longer with do we owe this money? My eyes see that the loan was "transferred" to Williams and Fudge, Inc which by my research is a collection agency and in their signature it states: "This communication is from a debt collector and is an attempt to collect a debt. Any information obtained will be used for that purpose." and makes reference to the Rosenthal Fair Debt Collection Practices Act and the federal Fair Debt Collection Practices Act. Additionally, they state that there are no terms, only pay arrangement or payment in full.

In addition to the Williams and Fudge, Inc "debt" I'm continuing to do more research on EDMC, which is the parent company of AI, and it looks as though you can get your Federal loans forgiven, which to me would be the Great Lake loans but will have to do some more research on it.

Long post, but in summary:

1. Do we need to pay the AI loan now that it has transferred to a debt collection agency (William and Fudge Inc)
2. Is there a possibility that we are able to get forgiveness on the Great Lake loans?
3. If you have gone through this or know someone has gone through this, I'd be interested to hear what was done

Heir-A-Parent
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Re: Former Art Institute Student: Loan Forgiveness / Fake Debt?

Post by Heir-A-Parent » Fri Jul 08, 2016 8:14 pm

You will have to pay back both loans in full. Don't mess around with student loans - they are dangerous loans to carry around longer than you have to.

Unfortunately there are no magic tricks when it comes to paying back loans. Even the income-based payment plans result in a tax bomb at the end.

Flora
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Re: Former Art Institute Student: Loan Forgiveness / Fake Debt?

Post by Flora » Fri Jul 08, 2016 8:26 pm


GreenGrowTheDollars
Posts: 440
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Re: Former Art Institute Student: Loan Forgiveness / Fake Debt?

Post by GreenGrowTheDollars » Fri Jul 08, 2016 8:29 pm

Might want to read this and follow up on it to see if any forgiveness might apply: http://www.wsj.com/articles/aly-raisman ... 1467992293

Public Service Announcement: For profit colleges and universities are usually a rip-off. There are very, very few cases where people actually get worthwhile degrees, and way too many cases where people get left with boatloads of debt.

Topic Author
Cmpliance
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Joined: Wed Jan 08, 2014 11:41 pm

Re: Former Art Institute Student: Loan Forgiveness / Fake Debt?

Post by Cmpliance » Fri Jul 08, 2016 11:14 pm

GreenGrowTheDollars wrote:Might want to read this and follow up on it to see if any forgiveness might apply: http://www.wsj.com/articles/aly-raisman ... 1467992293

Public Service Announcement: For profit colleges and universities are usually a rip-off. There are very, very few cases where people actually get worthwhile degrees, and way too many cases where people get left with boatloads of debt.
Gymnastics? Is that the wrong link? haha

Teague
Posts: 1753
Joined: Wed Nov 04, 2015 6:15 pm

Re: Former Art Institute Student: Loan Forgiveness / Fake Debt?

Post by Teague » Sat Jul 09, 2016 12:28 am

HardHitter wrote:
GreenGrowTheDollars wrote:Might want to read this and follow up on it to see if any forgiveness might apply: http://www.wsj.com/articles/aly-raisman ... 1467992293

Public Service Announcement: For profit colleges and universities are usually a rip-off. There are very, very few cases where people actually get worthwhile degrees, and way too many cases where people get left with boatloads of debt.
Gymnastics? Is that the wrong link? haha
Well, the pictures do show a young person going through endless painful contortions and gyrations, with a dauntingly small chance of being completely successful....
Semper Augustus

nps
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Joined: Thu Dec 04, 2014 10:18 am

Re: Former Art Institute Student: Loan Forgiveness / Fake Debt?

Post by nps » Sat Jul 09, 2016 6:49 am

Heir-A-Parent wrote:You will have to pay back both loans in full.
I wouldn't be so sure of that. This for-profit college agreed to forgive certain debt as part of a fraud settlement last year. And just a few days ago the Department of Education announced that another group of borrowers who had attended a different for-profit college, Corinthian, would have their loans forgiven. So the notion that student debt must be repaid seems less than absolute, particularly with some of these for-profit colleges.

Topic Author
Cmpliance
Posts: 602
Joined: Wed Jan 08, 2014 11:41 pm

Re: Former Art Institute Student: Loan Forgiveness / Fake Debt?

Post by Cmpliance » Sat Jul 09, 2016 9:51 am

nps wrote:
Heir-A-Parent wrote:You will have to pay back both loans in full.
I wouldn't be so sure of that. This for-profit college agreed to forgive certain debt as part of a fraud settlement last year. And just a few days ago the Department of Education announced that another group of borrowers who had attended a different for-profit college, Corinthian, would have their loans forgiven. So the notion that student debt must be repaid seems less than absolute, particularly with some of these for-profit colleges.
Exact reason why I am looking into this. People are getting their loans forgiven and just wanting to see if someone has gone through the process. It really seems like the for-profit college screwed over a lot of people...partially including my wife until I told her to get out of there.

GreenGrowTheDollars
Posts: 440
Joined: Fri Dec 18, 2015 11:09 pm

Re: Former Art Institute Student: Loan Forgiveness / Fake Debt?

Post by GreenGrowTheDollars » Sat Jul 09, 2016 11:55 pm

HardHitter wrote:
GreenGrowTheDollars wrote:Might want to read this and follow up on it to see if any forgiveness might apply: http://www.wsj.com/articles/aly-raisman ... 1467992293

Public Service Announcement: For profit colleges and universities are usually a rip-off. There are very, very few cases where people actually get worthwhile degrees, and way too many cases where people get left with boatloads of debt.
Gymnastics? Is that the wrong link? haha
I'm so sorry. :oops: the link I intended was that there was a forgiveness program for that particular for profit college.

Topic Author
Cmpliance
Posts: 602
Joined: Wed Jan 08, 2014 11:41 pm

Re: Former Art Institute Student: Loan Forgiveness / Fake Debt?

Post by Cmpliance » Sun Jul 10, 2016 11:07 am

GreenGrowTheDollars wrote:
HardHitter wrote:
GreenGrowTheDollars wrote:Might want to read this and follow up on it to see if any forgiveness might apply: http://www.wsj.com/articles/aly-raisman ... 1467992293

Public Service Announcement: For profit colleges and universities are usually a rip-off. There are very, very few cases where people actually get worthwhile degrees, and way too many cases where people get left with boatloads of debt.
Gymnastics? Is that the wrong link? haha
I'm so sorry. :oops: the link I intended was that there was a forgiveness program for that particular for profit college.
Hah not a problem. Do you have the actual link?

TIAX
Posts: 1286
Joined: Sat Jan 11, 2014 12:19 pm

Re: Former Art Institute Student: Loan Forgiveness / Fake Debt?

Post by TIAX » Sun Jul 10, 2016 8:12 pm

HardHitter wrote: We've been paying on both loans (Federal & AI) and recently we stopped getting statements from AI. When my wife called, they said that the debt payback is now being managed by Williams & Fudge, Inc.
That sounds like a made up company; I wouldn't pay them :happy

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