FAFSA eligibility restored after Corinthian College discharge - what happens now?
I'm still in shock! Just received notice that my federal student loans from attending a Corinthian College are being completely discharged. After struggling with these payments for 8 years, it feels surreal. The letter says I'm eligible for "restoration of FAFSA eligibility" but I'm confused about what this actually means for me. Does this mean I can apply for financial aid again? I've been wanting to finish my degree at a community college, but was always blocked because of my loan default status. Has anyone else received this discharge and successfully applied for FAFSA afterwards? I want to make sure I understand the process correctly before getting my hopes up again. Also - will this discharge affect my credit score positively or negatively?
23 comments


CosmicCrusader
Congratulations! The Corinthian College discharge is legitimate, and yes, you absolutely can apply for FAFSA again! This is called "reinstatement of federal student aid eligibility" and it's one of the key benefits beyond just having the debt cleared. Here's what you need to know: 1. Your FAFSA eligibility should be automatically restored once the discharge is processed (usually 30-60 days) 2. You'll need to start a new FAFSA application for the upcoming 2025-2026 year 3. Use the "Financial History" section to indicate your previous situation 4. Your discharged loans won't count against your lifetime eligibility limits 5. Regarding credit score - the discharge should remove negative marks related to these loans, generally resulting in an improvement When you apply, make sure your SAI (Student Aid Index) calculation reflects your current situation, not when you were at Corinthian.
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Omar Zaki
•Thank you SO MUCH for the detailed info! This is incredibly helpful. Quick follow-up - I'm not sure if it matters, but I technically never finished paying my PELL grants back either (was part of the whole mess). Do I need to do anything special about those in the new FAFSA application?
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Chloe Robinson
BE CAREFUL!!!! I got that same notice back in March and i was SO HAPPY but when I tried to do my FAFSA in April, the system STILL showed me as in default!!!!!! Had to call the dept of education like 20 TIMES and nobody could help me!!!! They kept transferring me in circles!!!! The discharge happens but the systems dont talk to eachother so youll STILL show as defaulted unless u specifically get them to update something in there system. DONT TRUST THE LETTER ALONE!!!!!
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Diego Flores
•Omg this is so true. Same thing happened to my cousin. She got the discharge letter but still couldn't get approved for FAFSA. Took her like 3 months to get it sorted out. The government systems are all messed up
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Anastasia Kozlov
•I had this exact issue but there's actually a specific department that handles the Corinthian discharge updates. When I finally reached someone at FSA, they told me to call the Borrower Defense Hotline at 1-855-279-6207 and specifically ask for a "NSLDS update" which means National Student Loan Data System. That's the database FAFSA checks for eligibility. Once they processed my update, it took about 10 days and then my FAFSA went through properly. If you're having trouble getting through on the phone lines, I used Claimyr (claimyr.com) to connect with an agent without the endless hold times. They have a video showing how it works: https://youtu.be/TbC8dZQWYNQ. Totally worth it because I was getting nowhere spending hours on hold by myself.
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Sean Flanagan
This is wonderful news for you! As a financial aid advisor, I can confirm this is part of the Borrower Defense to Repayment program that was expanded significantly. Some important technical details about your FAFSA eligibility: - Your loans being discharged means they no longer count toward your aggregate loan limits - Any Pell Grants associated with the fraudulent program will have their "usage" restored to your lifetime eligibility - Your SAI (Student Aid Index) calculation will not be affected by these discharged loans - If you were in default, that status should be removed from your credit history Important: You should receive a second notification from Federal Student Aid specifically about your eligibility restoration. If you don't receive this within 90 days of your discharge notice, contact your loan servicer directly. For the 2025-2026 FAFSA, you'll need to create a new FSA ID if you don't have one already and complete the application normally.
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Omar Zaki
•This is incredibly helpful, thank you! I didn't realize I needed to wait for a second notification about eligibility restoration. Is there any way to check my status online while I wait for that second letter? And do I need to wait for that letter before starting my FAFSA application for next year?
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Sean Flanagan
•You can check your current federal student aid status at studentaid.gov using your FSA ID. Look for the "My Aid" section which will show your loan status and eligibility information. You don't need to wait for the second letter to start your FAFSA - you can begin the application anytime. However, before submitting, I'd recommend checking your aid status online to ensure the system shows your loans as discharged. If it doesn't match what your discharge letter states, that's when you'd need to call and have them update the NSLDS system as others have mentioned.
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Zara Mirza
my brother got this 2 and he said it took like 2 weeks before he could apply for fasfa again but he did get approved. he said his credit score went up like 70 points too lol
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NebulaNinja
I also got the Corinthian discharge last year and it changed my life!! I was able to apply for FAFSA again and am now back in school finishing my nursing degree 😭 Something no one told me was that I had to specifically request a refund of payments I had already made on those loans - they don't automatically send those back! Call your loan servicer ASAP and ask about that too!
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Omar Zaki
•OMG I had no idea about requesting refunds for payments already made! I've been paying on these loans for 8 years - that could be a substantial amount. Thank you so much for mentioning this!!!
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Chloe Robinson
•WHAT!!?? They never told me about refunds either!!! How long did it take to get your money back?????
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NebulaNinja
•It took about 4 months total to get my refund. First they had to calculate all the payments I'd made (about 6 weeks), then another 10 weeks for processing the actual refund. I got back almost $13,400! Call RIGHT AWAY though because I heard some people had trouble getting refunds if they waited too long after the discharge notice.
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Diego Flores
lol congrats! wish i could get my loans discharged too 😂 so tired of these payments
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CosmicCrusader
•You might qualify for discharge or forgiveness under a different program, depending on your situation. There are several options beyond just the Corinthian settlement: Public Service Loan Forgiveness (PSLF), Income-Driven Repayment forgiveness, disability discharges, and others. Check studentaid.gov to see what you might qualify for!
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Omar Zaki
UPDATE: I checked my studentaid.gov account this morning and it still shows my loans as active, not discharged. The letter I got is dated 2 weeks ago. Should I be worried that the system hasn't updated yet? Has anyone else experienced delays between getting the letter and seeing it reflected in the system?
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Anastasia Kozlov
•This is totally normal! The system takes time to update. Mine took about 4-5 weeks to show as discharged on studentaid.gov after I got the letter. If it's not updated after a month, then I'd recommend calling. The whole system is still processing thousands of these discharges.
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Luca Russo
I'm going through the same thing right now! Got my discharge letter for DeVry 3 weeks ago. One thing nobody told me - save a PDF copy of your discharge letter immediately!!! My servicer's website changed and I lost access to the notification for a few days which sent me into a panic. I'm printing out copies and keeping them forever lol. Good luck with going back to school! 🎓
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Omar Zaki
•That's such a smart idea, thank you! I'm going to save multiple copies right now. And congratulations on your discharge too!
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Nia Thompson
This is such exciting news for you! I went through a similar situation with my ITT Tech loans getting discharged about 2 years ago. A few things I learned that might help: 1. **Timeline expectations**: The system updates can be slow - mine took about 6-8 weeks to fully reflect in all databases. Don't panic if studentaid.gov still shows old info for another month or so. 2. **FAFSA prep**: Start gathering your tax documents now for the 2025-2026 FAFSA. You'll want to apply as soon as your eligibility is confirmed in the system, especially if you're planning to start community college in fall 2025. 3. **Credit monitoring**: Keep an eye on your credit reports over the next few months. The positive changes should start showing up, but sometimes you need to dispute lingering negative marks if they don't automatically clear. 4. **Documentation**: Like others mentioned, keep copies of EVERYTHING. I also recommend taking screenshots of your studentaid.gov account once it shows the loans as discharged - just in case there are any system glitches later. You're finally free to pursue your education goals! Community college is a great fresh start. Wishing you all the best! 🎉
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Rami Samuels
•Thank you so much for sharing your experience with ITT Tech! It's really reassuring to hear from someone who's been through this process already. I'm definitely going to start preparing my tax documents now - that's great advice about applying early once my eligibility is confirmed. And I hadn't thought about taking screenshots of my account once everything updates, but that's brilliant given how glitchy these systems can be. Really appreciate you taking the time to share all these practical tips! 🙏
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Omar Farouk
Congratulations on getting your discharge! This is huge! I'm a financial aid counselor and I've helped several students navigate this exact situation. A few important points to add to the great advice already shared: **Immediate steps:** - Download and save multiple copies of your discharge letter (as others mentioned) - Check your credit reports in 60-90 days to ensure the discharged loans are properly removed - Consider setting up credit monitoring to track the positive changes **FAFSA application tips:** - You can start your 2025-2026 FAFSA application now, but wait to submit until you confirm your loans show as discharged in the system - When you apply, you'll be treated as a "new" borrower for aggregate loan limits, which is fantastic - Make sure to complete the FAFSA early - community colleges often have limited aid funds that are awarded first-come, first-served **One thing most people don't know:** If you had any federal work-study earnings or other aid from your time at Corinthian that was later deemed fraudulent, those amounts may also be restored to your lifetime eligibility limits. You're about to get a fresh start on your educational journey - that's incredible after 8 years of struggle! Community college is an excellent choice for completing your degree affordably. Best of luck! 🌟
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Carmen Lopez
•This is incredibly comprehensive advice - thank you so much! I had no idea about the work-study earnings potentially being restored to my lifetime eligibility limits. That's something I definitely need to look into since I did have work-study at Corinthian. Your point about applying early to community college makes total sense too - I didn't realize their aid funds were first-come, first-served. I'm feeling much more confident about this whole process now with all the detailed guidance from everyone here. It's amazing to finally see light at the end of the tunnel after so many years of feeling stuck!
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