Did you take out loans to attend Regency Beauty?

Friday, September 30, 2016

Regency Beauty Institute announced it’s closing all 79 campuses, effective immediately.

If you have federal loans and were attending Regency when it announced its closure on Sept. 28, 2016, or if you withdrew from Regency on or after May 31, 2016, you have two primary options:

1. Apply for a closed school loan discharge; or
2. Transfer earned credits to another institution to continue your education in a comparable program.

Closed School Discharge

If you were enrolled or recently left Regency (on or after May 31, 2016) and you have not yet completed your degree or program, you may be able to discharge (cancel) your federal student loans if you apply for a closed school loan discharge. Fill out the discharge application and send it directly to your loan servicer (the company that sends you your monthly bill). 

Parents may also seek discharge of any Parent PLUS loans used to fund the expenses of dependent students who were unable to complete their degree due to a school closure.

Transferring schools

If you transfer the credits you’ve earned at Regency Beauty toward a comparable program at another school and you complete or are in the process of completing that program, you will not be eligible to receive a closed school loan discharge. Also, if you do have your federal loans discharged because your college closed and you end up transferring credits to a similar program at another college, you may have to pay back the loans that were discharged. If you receive an offer from another college to transfer your credits, be sure you understand how it will affect your right to discharge your federal student loans.

Private student loan borrowers

Even if your school closed, options for private loan borrowers are more limited and you are likely still responsible for repaying the loans. However, some states may have programs that assist students with private student loans in the event of a college closure. Additionally, some private student lenders may offer options to assist certain borrowers in this situation. Contact your student loan servicer and ask them about your options. Your servicer will also inform you of any repayment options that are available to you. If you have problems with your private student loans, or your loan servicer, submit a complaint to the CFPB online or by calling the bureau at (855) 411-2372.

Where to find more information

For help in understanding the information presented above, contact the Federal Student Aid Information Center at 1-800-4-FED-AID.

In the coming days, the Department of Education will post additional information related to upcoming webinars and other resources to assist students. Please check back with ED often for updates.