Agreement waives almost $13.9 million of debt for MI students

Andrew Cummings
January 6, 2019

That forgiven debt for North Carolina students amounts to more than $9 million.

"Today's settlement ensures the company treats students the way they should have been all along - with honesty and respect for their futures", Illinois Attorney General Lisa Madigan said, according to the Associated Press.

CEC has agreed to forgo collection of debts owed by students who either attended a CEC institution that closed before January 1 or whose final day of attendance at American InterContinental University or Colorado Technical University occurred on or before December 31, 2013.

Schmidt, along with other Attorneys General, launched an investigation in 2014 after receiving numerous complaints from students.

"We have remained steadfast in our belief that we can work with the attorneys general to demonstrate the quality of our institutions and our commitment to students", CEO Todd Nelson said in a statement. The investigation also found that admissions representatives told prospective students only about the cost per credit hour without disclosing the total number of required credit hours and misled students about the transferability of credits to other institutions. CEC will forgo collecting more than $493.6 million in debts owed by almost 175,000 students nationwide.

"Students who borrow for higher education are investing in their future", Stein said.

Career Education Corporation (CEC), headquartered in IL, has owned several for-profit schools, including Le Cordon Bleu, Briarcliffe College, Brooks Institute, Brown College, Harrington College of Design and International Academy of Design & Technology (later known as Sanford-Brown). CEC denied the allegations of the attorneys general but agreed to resolve the claims through this multistate settlement. Students might still be responsible for any federal loans to pay for their education through CEC.

Nationally, about 180,000 students will benefit from the settlement.

"As a result of this settlement, people that have outstanding student debt that was obtained through these specific universities will have that debt removed or relieved".

The settlement will provide debt relief to students who were enrolled in classes on the chain's campuses and in on-line courses. And in October 2017, AG Healey sued to protect the Gainful Employment Rule, a federal regulation created to protect students and taxpayers from predatory for-profit schools.

The company has not yet finalized agreements with the attorneys general of California or NY.

Addressing fraud and abuse in student lending has been a top priority for AG Healey since taking office, whether taking predatory schools to court, changing the practices of student loan servicers, going after unlawful student loan "debt relief" companies, or helping student borrowers find more affordable repayment solutions through her first-in-the-nation Student Loan Assistance Unit.

Other reports by iNewsToday