For thousands of borrowers who attended a private professional school in Colorado, the Biden administration’s Department of Education said on Tuesday that it will forgive around $130 million in federal student loan debt.
Federal and Colorado officials announced Tuesday that Colorado students who attended the career school, which lost accreditation and closed in 2021, will have their federal student loans refunded and the remaining balances are forgiven. (Source: Star herald)
Student Loan Forgiveness for Private School Debtors
In a published news by The Blaze media, according to a press release from the Department of Education, about 7,400 former students who attended CollegeAmerica between January 1, 2006, and July 1, 2020, will be given “automatic relief.” The Center for Excellence in Higher Education, the parent company of CollegeAmerica, was found to have made numerous false statements about the salaries and employment rates of its graduates, the programs it offered, and the conditions of a private loan product it offered, according to information gathered by Colorado Attorney General Phil Weiser and reported by the Department of Education.
Students could earn associate’s and bachelor’s degrees in business, computer technology, computer science, and medical assisting from the institution, which had campuses in Colorado and Arizona. In addition, it also offers several educational savings plans for their schooling.
Weiser claimed that the university intentionally exploited students by luring them into expensive, low-quality programs with claims of great earning potential and job placement that it knew were unattainable. Weiser’s investigation into the college began in 2012, at which point he filed his complaint.
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