Douglas Olsen
Navigating student loan forgiveness can be complex, especially when considering specific institutions like Kaplan University. Many borrowers wonder if their Kaplan student loans qualify for forgiveness programs. The answer often depends on factors such as the type of loan (federal or private), the borrower’s employment status, and whether Kaplan faced legal actions or closures that might trigger forgiveness options. For instance, Kaplan was part of a settlement with the U.S. Department of Justice, which led to loan discharges for some borrowers under the Borrower Defense to Repayment program. Additionally, federal loan forgiveness programs like Public Service Loan Forgiveness (PSLF) or income-driven repayment plans may apply if the loans are federal. However, private loans typically have fewer forgiveness options. Borrowers should research their eligibility, gather necessary documentation, and consult with loan servicers or legal experts to explore their best path to relief.
| Characteristics | Values |
|---|---|
| Eligibility for Loan Forgiveness | Limited to specific programs like Borrower Defense to Repayment (BDR) or Closed School Discharge if Kaplan closed while enrolled. |
| Borrower Defense to Repayment (BDR) | Available if Kaplan misled students about job prospects, loan terms, or educational quality. Requires evidence of misconduct. |
| Closed School Discharge | Eligible if Kaplan closed while enrolled or within 120 days of withdrawal. Not applicable if transferred credits to another school. |
| Public Service Loan Forgiveness (PSLF) | Available if working full-time in qualifying public service jobs for 10 years, regardless of school. Kaplan attendance does not impact eligibility. |
| Income-Driven Repayment (IDR) Forgiveness | Forgiveness after 20-25 years of payments under IDR plans, depending on plan type. Not specific to Kaplan. |
| Kaplan-Specific Settlements | Past settlements (e.g., 2015) offered loan forgiveness to certain students, but these are no longer active. |
| State-Based Forgiveness Programs | Some states offer forgiveness programs, but eligibility varies and is not Kaplan-specific. |
| Private Loan Forgiveness | Rarely available; private loans are not eligible for federal forgiveness programs. |
| Current Active Forgiveness Programs | BDR, Closed School Discharge, PSLF, and IDR Forgiveness are the primary options. |
| Application Process | Submit applications through the U.S. Department of Education or loan servicer, depending on the program. |
| Evidence Required | Documentation of Kaplan's misconduct (for BDR) or proof of enrollment dates (for Closed School Discharge). |
| Tax Implications | Forgiveness may be taxable depending on the program and circumstances. |
| Impact on Credit Score | Discharged loans are removed from credit reports, potentially improving credit score. |
| Availability for International Students | Limited; most programs are for U.S. citizens or eligible non-citizens with federal loans. |
| Updates as of 2023 | No new Kaplan-specific forgiveness programs announced; existing federal programs remain the primary options. |
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What You'll Learn
Eligibility Criteria for Loan Forgiveness
Student loan forgiveness for Kaplan University attendees hinges on specific eligibility criteria tied to federal programs and legal settlements. Understanding these criteria is crucial for determining if your loans qualify for discharge or reduction. Here’s a breakdown of the key factors:
School Closure Discharge: A Pathway for Recent Closures
If Kaplan closed while you were enrolled or shortly after you withdrew, you may qualify for a closed school discharge. This federal program forgives federal Direct Loans, Federal Family Education Loans (FFEL), and Perkins Loans for eligible students. To qualify, you must have been enrolled when the school closed or have withdrawn within 120 days of closure. For example, if Kaplan’s campus shut down in 2019, students who left after March 2019 could apply. However, this option excludes private loans, so borrowers with non-federal debt must explore other avenues.
Borrower Defense to Repayment: Alleging Misrepresentation
Kaplan’s legal settlements, including a $1.3 billion agreement in 2015, opened doors for Borrower Defense to Repayment (BDR) claims. This program forgives federal loans if the school misled you about job placement rates, program accreditation, or other critical factors. To qualify, submit evidence such as enrollment agreements, marketing materials, or testimony detailing false claims. For instance, if Kaplan promised a 90% employment rate in a program with actual rates below 50%, this could strengthen your case. Approval may result in full loan discharge and refund of payments made.
Public Service Loan Forgiveness: A Long-Term Strategy
For Kaplan graduates working in public service, the Public Service Loan Forgiveness (PSLF) program offers relief after 120 qualifying payments. Eligibility requires employment with a government or nonprofit organization and enrollment in an income-driven repayment plan. For example, a nurse earning $60,000 annually could reduce monthly payments to $200 under Pay As You Earn (PAYE), making PSLF more attainable. However, this route demands meticulous documentation of payments and employer certification.
Income-Driven Repayment Forgiveness: A Safety Net
Income-driven plans like Income-Based Repayment (IBR) or Revised Pay As You Earn (REPAYE) cap payments at 10-20% of discretionary income and forgive remaining balances after 20-25 years. For instance, a borrower earning $35,000 with $50,000 in loans might pay $250 monthly under IBR, with forgiveness after 25 years. While this option doesn’t require Kaplan-specific eligibility, it’s a viable fallback for those ineligible for other programs. Note that forgiven amounts may be taxed as income, so plan accordingly.
Practical Tips for Maximizing Eligibility
To navigate these options, start by verifying your loan type through the National Student Loan Data System (NSLDS). For BDR claims, gather all communication from Kaplan, including emails and brochures. If pursuing PSLF, submit the Employer Certification Form annually to track progress. For income-driven plans, recertify income yearly to avoid payment spikes. Finally, consult a student loan attorney or nonprofit advisor to tailor your strategy to your unique circumstances.
By understanding these criteria and taking proactive steps, Kaplan borrowers can unlock pathways to loan forgiveness and regain financial stability.
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Kaplan’s Role in Forgiveness Programs
Kaplan University, once a major for-profit education institution, closed in 2018, leaving many students with questions about their student loans. For those seeking forgiveness, understanding Kaplan’s role in existing programs is critical. The school’s closure and its history of compliance issues have made its students eligible for specific federal loan discharge programs, particularly the Closed School Discharge and Borrower Defense to Repayment (BDR). These programs hinge on Kaplan’s actions, such as misrepresentations about job placement rates or accreditation, which directly impact a borrower’s eligibility for relief.
To qualify for forgiveness through Borrower Defense to Repayment, students must prove Kaplan engaged in misconduct that violated state laws and directly affected their decision to enroll. For instance, if Kaplan falsely advertised employment outcomes for its nursing program, graduates from that program could file a BDR claim. The U.S. Department of Education has already approved group discharges for certain Kaplan programs, such as its criminal justice and medical assistant programs, based on findings of misrepresentation. Documentation, like enrollment agreements or marketing materials, strengthens these claims.
The Closed School Discharge offers a more straightforward path for some borrowers. If you were enrolled at Kaplan when it closed or withdrew within 120 days of closure, you may qualify. However, if you transferred credits to another institution or received a transcript from Kaplan, you’re ineligible. This program doesn’t require proof of misconduct but is limited in scope. For example, students who completed their program before the closure must pursue BDR instead.
Kaplan’s acquisition by Purdue University in 2018, rebranding as Purdue University Global, further complicates matters. Students who transferred to Purdue Global may face different eligibility criteria for forgiveness. Those who remained with Kaplan until its closure or attended programs under investigation (e.g., paralegal studies) have stronger cases. The key is linking your enrollment period and program to documented violations or the closure itself.
Navigating these programs requires persistence. Start by submitting a BDR application through the Federal Student Aid website, detailing Kaplan’s misconduct and its impact on your enrollment. For Closed School Discharge, contact your loan servicer directly. Keep records of all communications and be prepared for delays, as processing times can exceed 12 months. While Kaplan’s role in these programs is pivotal, the burden of proof lies with the borrower—making thorough documentation and program-specific eligibility checks essential.
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Federal vs. Private Loan Forgiveness
Student loan forgiveness for Kaplan University attendees hinges critically on whether the loans are federal or private. Federal loans, backed by the U.S. Department of Education, offer pathways to forgiveness through programs like Public Service Loan Forgiveness (PSLF), Teacher Loan Forgiveness, and income-driven repayment (IDR) plans. For instance, PSLF forgives remaining balances after 120 qualifying payments for borrowers working full-time in eligible public service jobs. Private loans, however, are not eligible for these federal programs. Lenders like Sallie Mae or Wells Fargo rarely offer forgiveness options, though some may provide temporary relief or settlement negotiations in cases of extreme hardship.
To determine eligibility for federal forgiveness, Kaplan borrowers must first confirm their loan type via the National Student Loan Data System (NSLDS). If federal, they should consolidate loans into a Direct Consolidation Loan if necessary, as only Direct Loans qualify for PSLF and most IDR plans. For example, a borrower with FFEL loans (common before 2010) must consolidate to access PSLF. Private loan holders have fewer options but can explore refinancing to lower interest rates or negotiate with lenders for reduced payoffs, though these are not guaranteed.
A key distinction lies in the forgiveness process. Federal programs require meticulous documentation, such as employment certification for PSLF and annual income recertification for IDR plans. Missing deadlines or paperwork can disqualify borrowers. Private lenders, on the other hand, handle negotiations on a case-by-case basis, often requiring proof of financial hardship. For instance, a borrower might need to provide tax returns, bank statements, or a hardship letter to demonstrate inability to repay.
Kaplan’s closure in 2018 and its involvement in lawsuits over predatory lending practices have opened additional avenues for federal loan forgiveness. Borrowers may qualify for Borrower Defense to Repayment (BDR) if they can prove the school misled them about job prospects or program quality. Approved BDR claims result in full loan discharge and refunds for amounts already paid. Private loan holders, however, cannot access BDR, as it is a federal program.
In summary, federal loan forgiveness for Kaplan attendees is structured and accessible through specific programs, though it demands diligence in meeting requirements. Private loan forgiveness remains elusive, relying on lender discretion and individual negotiation. Borrowers should prioritize verifying loan types, exploring federal programs, and documenting all interactions with lenders or the Department of Education to maximize their chances of relief.
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Steps to Apply for Forgiveness
Student loan forgiveness for Kaplan University attendees hinges on understanding the specific programs available and their eligibility criteria. The first step is to determine if your loans qualify under federal forgiveness initiatives like Borrower Defense to Repayment or Closed School Discharge, as Kaplan faced legal actions and closures that may make former students eligible.
Begin by gathering documentation that proves your enrollment during periods of institutional misconduct or school closure. This includes transcripts, loan agreements, and any communication with Kaplan. For Borrower Defense claims, you’ll need to file a formal attestation with the U.S. Department of Education, detailing how Kaplan violated state laws or misled you. Be specific—for instance, if Kaplan falsely advertised job placement rates, include evidence like promotional materials or testimony from admissions staff.
Next, submit your application through the Federal Student Aid website. The process is free, and third-party services offering to expedite forgiveness for a fee are unnecessary. After submission, monitor your loan servicer account for updates, as processing times can vary. If your initial claim is denied, don’t despair—appeals are possible, and new regulations often expand eligibility criteria.
Finally, explore supplementary options like Public Service Loan Forgiveness (PSLF) if you work in qualifying public service roles. While not directly tied to Kaplan’s issues, PSLF can discharge remaining balances after 120 eligible payments. Combining strategies maximizes your chances of relief, but always prioritize federal programs over private solutions.
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Common Reasons for Loan Discharge
Student loan forgiveness for Kaplan University attendees hinges on specific circumstances, not a blanket exemption. Understanding the common reasons for loan discharge is crucial for anyone seeking relief. One primary avenue is school closure, which directly applies to Kaplan. When a school closes while a student is enrolled or shortly after withdrawal, federal loans may be eligible for discharge under the Closed School Discharge program. This requires submitting an application to the U.S. Department of Education, along with proof of enrollment status at the time of closure. For Kaplan students, this is particularly relevant due to the institution’s transition and eventual cessation of operations under its former name.
Another reason for loan discharge is borrower defense to repayment, which allows borrowers to seek forgiveness if their school misled them or engaged in illegal practices. For instance, if Kaplan misrepresented job placement rates, program accreditation, or the transferability of credits, affected students could file a claim. This process involves detailed documentation, including enrollment records, marketing materials, and evidence of the school’s misconduct. While this path is more complex, successful claims can result in full loan forgiveness and potential reimbursement of payments already made.
Total and permanent disability is a less institution-specific but equally valid reason for discharge. Borrowers who can prove they are unable to work due to a physical or mental impairment may qualify. This requires certification from a physician and can apply to any federal student loan, regardless of the school attended. For Kaplan graduates facing long-term health challenges, this option provides a critical financial lifeline, though it involves a rigorous verification process.
Lastly, public service loan forgiveness (PSLF) offers a pathway for borrowers who work full-time in qualifying public service jobs. After 120 eligible payments, the remaining balance on Direct Loans may be forgiven. While not exclusive to Kaplan students, this program is particularly beneficial for graduates pursuing careers in education, healthcare, or government. Tracking payments and employer certifications is essential to ensure eligibility, as the program has strict requirements.
In summary, Kaplan student loan forgiveness is achievable through specific discharge programs tied to school closure, borrower defense, disability, or public service. Each pathway requires careful documentation and adherence to federal guidelines, but they offer tangible solutions for those burdened by educational debt. Understanding these options empowers borrowers to take proactive steps toward financial relief.
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Frequently asked questions
Yes, some former Kaplan students may qualify for loan forgiveness through the Borrower Defense to Repayment program if they can prove the school misled them or violated state laws.
The Borrower Defense to Repayment program allows borrowers to seek loan forgiveness if their school engaged in misconduct or violated certain laws. Kaplan students may be eligible if they can demonstrate that the school misrepresented job placement rates, program quality, or other key information.
Yes, other options include Public Service Loan Forgiveness (PSLF) for those working in qualifying public service jobs, income-driven repayment plan forgiveness after 20–25 years, or closed school discharge if you were enrolled when Kaplan closed or withdrew within 120 days of closure.
To apply, submit an application for Borrower Defense to Repayment through the Federal Student Aid website, provide evidence of Kaplan’s misconduct, and ensure your loans are federally held. For other programs like PSLF or closed school discharge, follow the specific application processes outlined by the U.S. Department of Education.
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