Frequently Asked Questions
- How do I know whether my private student loan is eligible for loan relief?
- What type of loan relief will I receive?
- How will I be notified of the relief that I will receive?
- If I am a borrower with an Eligible Loan, under the Settlement do I need to do anything to receive loan relief?
- What is the “Re-Amortization Option” for Active Loans?
- What if I have more than one loan that is eligible for relief under the Settlement?
- Will I receive specific information about the treatment of my Eligible Loans under the Settlement?
- My loans are eligible for relief under the Settlement based on loan balances as of March 31, 2017. How will loan payments that I made after March 31, 2017 be treated under the Settlement?
- Will the Settlement affect my credit report?
- What if I already paid off my loan in full?
- What if I have loans with Campus Student Funding and other loan owners or holders?
- Does this Settlement change my current interest rate?
- How will relief provided by the Settlement affect a co-signer or guarantor of my loan?
- Will I need to pay taxes on any debt that is forgiven?
- Why did I receive the 1099-C Form?
- Will I continue to receive monthly statements and other communications from my loan servicer?
- How do I know whether my private student loan is eligible for loan relief?
Your loan must be an Eligible Loan, that is, a private student loan held by CSF and made to you to attend an Everest, Heald or WyoTech College (Corinthian Colleges campuses) that had an outstanding balance as of March 31, 2017.
Top - What type of loan relief will I receive?
The Settlement identifies two categories of relief for Eligible Loans:
a. Relief Category #1: “Defaulted Loans” Relief and “Closed School Loans” Relief
- “Defaulted Loans” Relief. If you are the borrower with an Eligible Loan that had an outstanding balance as of March 31, 2017 and was 270 or more days past due as of that date, your loan is discharged and released in full. You, and any co-signer or guarantor, do not owe any amounts on this loan.
- “Closed School Loans” Relief. If you are the borrower with an Eligible Loan that had an outstanding balance as of March 31, 2017, was less than 270 days past due as of that date, and your loan was determined to be a “Closed School Loan” under the Settlement, your loan is discharged and released in full. You, and any co-signer or guarantor, do not owe any amounts on this loan.
- Under the terms of the Settlement, a “Closed School Loan” is an Eligible Loan that was made to a borrower who did not graduate or complete his/her course work and who either (i) attended one of the Corinthian schools that Corinthian announced on April 27, 2015 would be closed and was either attending such school when it closed or withdrew from such school on or after June 1, 2014, or (ii) attended one of the Corinthian schools sold to another company.
b. Relief Category #2: “Active Loans” Relief. If you are a borrower with an Eligible Loan and your loan had an outstanding balance as of March 31, 2017 which was less than 270 days past due as of that date and your loan was not determined to be a Closed School Loan under the Settlement, the principal amount of your loan as of March 31, 2017 is reduced by 55%. Additionally, any accrued and unpaid interest, fees and charges on an Active Loan that were 30 or more days past due as of March 31, 2017 and certain other fees you may owe also are discharged and released. Note that borrowers with Eligible Active Loans are entitled to a re-amortization option, as described in the written borrower notices required by the Settlement and in the FAQ’s below.
Top - How will I be notified of the relief that I will receive?
For Eligible Loans, borrower notices required by the Settlement provide information about the specific relief that will be accorded Eligible Loans. Such notices will be mailed to the borrowers with Eligible Loans in the middle of November 2017 and, for certain borrowers, will also be available to view in the UAS online borrower portal at www.uasecho.com.
Top - If I am a borrower with an Eligible Loan, under the Settlement do I need to do anything to receive loan relief?
If you are a borrower, co-borrower or guarantor with an Eligible Loan, you do not need to take action to receive loan relief under the Settlement. However, if you are eligible for a Re-amortization Option on an Eligible Active Loan, you will need to make an election by notice to our servicer, UAS, if you want to exercise this option. See Re-Amortization Option question below.
Top - What is the “Re-Amortization Option” for Active Loans?
The Re-Amortization Option applies only to Eligible Active Loans that have remaining principal balances after the application of Settlement loan relief.
If you are the borrower with an Eligible Active Loan that has a remaining principal balance after loan relief is applied (unless your current regular monthly payment is $20 or less or you are on track to pay off your loan in the next two months under your current payment schedule), you are eligible to re-amortize your loan over the remaining term of your loan for a lower, more affordable monthly payment. “Re-amortization” means the outstanding balance of a loan at its current interest rate will be recalculated to be paid in reduced equal monthly installments (as compared with your regularly scheduled monthly payments) for the remainder of the loan term. If you elect the re-amortization option and make the re-amortized monthly payments as scheduled, you will pay more in interest over the remaining life of your loan than if you continue to pay your regularly scheduled payments without re-amortization.
a. If I am a borrower with an Eligible Active Loan, how can I get a re-amortized monthly payment under this option?
- Borrower notices for Eligible Active Loans describe how you can exercise your re-amortization option. If you are a borrower with an Eligible Active Loan and wish to exercise your re-amortization option, you will need to sign, date and return the election “tear-away” stub attached to your borrower notice and return it as directed within 90 days of the date of the notice.
b. If I elect a re-amortization option on my Eligible Active Loan, when will it be implemented and when can I start making lower monthly payments?
- If you return the Election Form within 90 days of the date of the notice, then no later than 30 days after expiration of the 90-day election period, your future monthly payments will be modified to a new lower monthly payment amount. If you do not exercise your option, then your loan payments will stay the same and your loan will be repaid sooner (and with less interest) than if you do exercise the re-amortization option.
c. Why will I pay more interest if I exercise my re-amortization election?
- You will pay more interest on a re-amortized loan because with lower monthly payments, it will take longer to fully pay off your loan. As a result of re-amortization, generally, you will have to pay more interest over the life of your loan than if you had continued to make your regularly scheduled payments.
d. If my loan is re-amortized, can I make larger payments to pay off my loan sooner?
- Yes, you can voluntarily make larger monthly payments and pay off your re-amortized loan sooner. This may save you money as you will pay less interest over the term of your loan.
e. If I am already on a forbearance plan, how will my payments be affected if I decide to re-amortize my Eligible Active Loan under the Settlement?
- The terms of your forbearance plan will not change if you elect to re-amortize your Eligible Active Loan. That is, if you are performing under a forbearance plan and continue to make payments on it, you will continue to benefit from it whether or not you make a re-amortization election under the Settlement. If you are currently on forbearance and you make a re-amortization election, such election will be applied once you successfully complete your payments under the forbearance plan. You can, however, elect your re-amortization option and terminate your forbearance plan if you would like to switch to regular payments under the re-amortization option.
- What if I have more than one loan that is eligible for relief under the Settlement?
Some borrowers may have more than one Eligible Loan that is eligible for loan relief under the Settlement. Loan relief is determined separately for each Eligible Loan based on the criteria in the Settlement. Depending on the status of each Eligible Loan, it is possible that a borrower may have loans that fall in both Eligible Loan relief categories described above.
Top - Will I receive specific information about the treatment of my Eligible Loans under the Settlement?
Yes, you will receive a written borrower notice required by the Settlement for each Eligible Loan, mailed to your Record Address.
Top - My loans are eligible for relief under the Settlement based on loan balances as of March 31, 2017. How will loan payments that I made after March 31, 2017 be treated under the Settlement?
Active Loan Relief. For this category of Eligible Loan relief, if our servicer received loan payments after March 31, 2017, payment amounts have been re-allocated to your reduced principal and interest balance (which will cause more of your payments to be applied to principal and less to interest). If such payment amounts exceed the amount necessary to pay the reduced loan balance and any other amounts due following the application of Settlement loan relief, you are to receive a refund of such excess payment amounts.
Defaulted Loans Relief and Closed School Loans Relief. For this category of Eligible Loan relief, if our servicers received payments after March 31, 2017, you are to receive a refund of the payment amounts.
Refund amounts will be processed and checks mailed to your Record Address.
Top - Will the Settlement affect my credit report?
The servicers of Eligible Loans have notified the credit bureaus to delete consumer payment information if it had been reported in the past. For borrowers with Eligible Active Loans who are required to continue making payments under the Settlement, CSF may report to the credit bureaus future activity after an Eligible Active Loan is modified under the Settlement.
Top - What if I already paid off my loan in full?
If you paid off your loan in full after March 31, 2017, under the Settlement you are to receive a refund check to the extent that you may have overpaid as a result of the application of the Settlement.
If you paid off your loan on or prior to March 31, 2017, your loan is not covered by the Settlement.
Top - What if I have loans with Campus Student Funding and other loan owners or holders?
This Settlement only covers private student loans held by CSF, defined as Eligible Loans (see above). Loans held or owned by anyone other than CSF, including government student loans or other private student loans made to attend one of the campuses of Corinthian Colleges, are not covered by the Settlement.
Top - Does this Settlement change my current interest rate?
No, your interest rate will not change on your Eligible Loan, but if you are eligible for relief, the principal amount you owe will be reduced (Eligible Active Loans) or discharged in full (Eligible Defaulted Loans and Eligible Closed School Loans).
Top - How will relief provided by the Settlement affect a co-signer or guarantor of my loan?
If you are a borrower with an Eligible Loan, any loan relief carried out under the Settlement will have the same benefit to co-signers or guarantors of your loan as it does to you as borrower.
Top - Will I need to pay taxes on any debt that is forgiven?
That may be the case. We can’t advise you about your personal tax situation. If you have a tax advisor, you may wish to contact that person or company to talk about the effect of debt relief on income tax liability. Depending on your individual facts and circumstances, exceptions and defenses could be available to you. You may need to file a form with the IRS to claim an exception. You also may contact the Internal Revenue Service, to ask questions and get help with your personal situation. Resources available include the Internal Revenue Service’s Taxpayer Advocate Service:
https://www.irs.gov/advocate/the-taxpayer-advocate-service-is-your-voice-at-the-irs or toll-free at 877-777-4778.
Top - Why did I receive the 1099-C Form?
The settlement with the CFPB and certain state Attorneys General required a discharge and cancellation of debt. The IRS requires issuance of a 1099-C form to any borrower when the borrower receives discharge of indebtedness (principal amount) of $600 or more.
a. Does this affect my federal student loan(s)? Has my federal student loan(s) been discharged/released/ forgiven?
- No, this relates ONLY to the private student loan(s) subject to the Settlement, that you obtained through the Genesis loan program, to attend one of the Corinthian Colleges schools (Heald, Everett, Wyotech). This does not relate to any federal student loan you may have.
b. I disagree with information that is included in the 1099-C form. What should I do?
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Please provide us what you believe the correct information is and the basis for it. If necessary, you can email us the information to inquiries@campusstudentfunding.com. Please include “1099-C” reference in your communication.
c. I have further questions regarding the 1099-C form, and would like to speak to someone about them.
- Please call (877) 760-4780 to speak to a customer service representative. Please note that customer service representatives won’t be able to advise you on your specific tax circumstances.
- Will I continue to receive monthly statements and other communications from my loan servicer?
Yes, if you are a borrower with an Eligible Active Loan, you will continue to receive monthly statements at your Record Address covering your loan and other communications from our loan servicer until your loan is paid off.
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