Did you attend FastTrain College (FastTrain II Corporation)? If so, you might be eligible for a discharge of the federal student loans you took out to attend the school.

As I am sure most former FastTrain students are aware, the school closed shortly after an FBI raid back in 2012. The CEO and several other school officials were eventually convicted of fraud in federal court. In addition, the Department of Justice successfully obtained a civil judgement both against the CEO and the school.

Unfortunately, the Department of Education has not granted class relief to former FastTrain students. So it is up to the individual student to figure out if they qualify for a discharge and to apply for it. To my surprise, many FastTrain students have not explored the possibility of a discharge, even though many students are eligible to have their loans discharged and to have the money they have already paid repaid to them.

Let me briefly discuss why as a former FastTrain College student you might be entitled to a discharge, and the possible strategies you can use to get your FastTrain College loans discharged.

First, according to the Department of Justice, FastTrain engaged in financial aid fraud. FastTrain did this in several different ways. FastTrain falsely certified the eligibility of some students for federal financial aid. FastTrain also falsified attendance records. School officials would keep students on their attendance rolls and falsify their attendance records, so they could keep receiving financial aid in the student’s name even though they were not actually attending. If you were the victim of either of these types of fraud you are eligible for a False Certification of Student Eligibility or Unauthorized Payment Discharge.

FastTrain also engaged in a different type of fraud. Under intense pressure from management, certain school admissions officials deliberately provided false statistics to prospective students to trick them into attending. As an example, certain officials would cite specific Department of Labor statistics, telling them that a particular FastTrain degree would earn them e.g., $100,000 a year, knowing that the statistics they were showing the students were not for the careers the FastTrain degree would qualify them for. This is potentially a basis for a Borrower Defense Discharge. To qualify for this discharge a FastTrain student would have to prove that the specific conduct at issue gives rise to a cause of action against the school under state law.

Let me end with the easiest type of discharge, the Closed School Discharge. A Closed School Discharge allows you to discharge your Direct Loans, Family Education Loans, and Perkins loans if your school closes while you are enrolled and you do not complete your degree as a result; or if your school closes within 120 days after you withdraw. You are not eligible for a closed school discharge if you are completing your degree through a teach-out agreement with the school or if you are completing your degree by transferring earned academic credits to another school. You are also ineligible if you have completed all your coursework at the time the school closes. If you are eligible for a closed school discharge, I would definitely pursue this type of discharge first (because it is an easier process).

Note that this is not a comprehensive discussion. There are all sorts of nuances. You may or may not be eligible for the types of discharge I discussed above. Or, there may be a different type of discharge that applies in your particular situation. Either way, I think former FastTrain students should at least take time to investigate the possibilities. It doesn’t make sense to struggle to pay a large student loan debt if you are entitled to a discharge of that debt. It makes economic sense to look into the possibilities.

If you want help, call me for a free initial consultation. (904) 419-9858. I will give you straightforward answers and can quickly bring you up to speed on your options.