Thousands of Private Student Loans Forgiven

Thousands of Private Student Loans Forgiven

The company also agreed to bolster its staff training and hire a third-party administrator to report on its compliance with operational and marketing parts of the agreement.

"Education programs must make proper disclosures to students so they can make informed decisions about their education", AG Healey said.

As part of the agreement, the company is expected to forgo collecting almost $493.7 million in debts owed by former students, including an estimated $12.2 million for about 4,800 Ohioans.

In addition to the debt relief, which will be announced to affected students by mail, the terms of the settlement require increased transparency from CEC and a one-page disclosure sheet about costs, potential debt, earnings for relevant professions and job placement rates.

"For years, this company was less than honest with students and prospective students about the costs and other important aspects of their higher education", Idaho Attorney General Lawrence Wasden said in a news release Thursday.

The debt relief applies to students who either attended a CEC institution that closed before January 1, or whose final day at American InterContinental University or Colorado Technical University happened on or before December 31, 2013, the release said.

CEC was once among the biggest for-profit educational institutions in the country, with brands including International Academy of Design & Technology, Le Cordon Bleu, Missouri College, and Sanford-Brown under its umbrella. CEC closed or phased out many of its schools over the past 10 years.

Todd Nelson, chief executive officer, said in a statement, "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".

Allen Hurns, Dallas Cowboys wide receiver, injures left leg
Facing fourth-and-5 in Janikowski's range from the Dallas 39, Doug Baldwin made a toe-dragging catch on the sideline for 22 yards. Because Janikowski was injured, Seattle went for two in a situation where teams nearly always go for the extra point.

Students do no need to take any action to receive relief.

About 6,200 Arizona students with more than $22 million in outstanding debt were impacted by the settlement, an average of around $3,500 per student.

As a result, some students could not obtain professional licenses and incurred debts that they could not repay nor discharge.

Students who already paid off their loans through CEC are not included in the settlement.

The company also misrepresented the job placement rates of past graduates. For example, the company inaccurately claimed that its graduates were "placed" when they worked only temporarily or were working in unrelated jobs. Some Washingtonians may still be attending CEC schools through online programs.

The agreement comes amid increased scrutiny on U.S. Secretary of Education Betsy DeVos for her handling of student debt and for-profit college's predatory practices. It will also have to provide a risk-free trial period for students who have less than 24 credit hours when they enter the program.

Assistant Attorney General Joseph Chambers, head of the Finance Department, assisted the Attorney General with this matter.

Related Articles