Lawsuit Erases $490 Million Worth of Student Debt

Student Loan Consolidation

student debt

Student debt warriors get another win!

In the fight against deceptive practices, another deceptive education company gets slapped down. If you went through the Career Education Corporation for your loans, you’re in luck! After a long battle, they’ve agreed to forgive more than $490 million worth of student debt. This impacts over 180,000 students in 47 states!

Arizona Attorney General Mark Brnovich took part in the fight. He said:

“Our goal was to provide debt relief and restitution for those that were allegedly conned or ripped off by this for-profit university,” he said. “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.”

Investigators for the 47 states involved in the lawsuit believed the CEC intentionally lied to students. They misled them about the cost of college, whether credits would transfer, and lied about job placement numbers. A lot of these for-profit colleges advertised on inflated or completely made-up placement numbers.

To learn more about student debt and how to obtain forgiveness, give Financial Helpers a call! We’d love to hear from you. You can reach us at:

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Student Debt Deception

The CEC has operated ten different campuses, both defunct and still active. Le Cordon Bleu, Sanford-Brown, and Collins are among them. Over the years, the CEC has closed down most of their physical campuses and now mostly stick to online courses. They go by the name American InterContinental University and Colorado Technical University.

Their defunct schools include: Brooks Institute, Katharine Gibbs School, Philadelphia College, Missouri College, Harrington Schools of Design, and Briarcliffe College.

“We do know that there are people here in Arizona that obtained student loans through these universities, and as a result of the settlement they’ll be provided debt relief,” Brnovich said.

While many students no longer have their debt, they are not in the lawsuit. That means no refund is currently in the works. But since this is a sign of guilt, those individuals are more likely to pursue a lawsuit of their own. The CEC will notify students if they’re eligible to have their student debt forgiven.

Wipe Your Debt Away

The CEC didn’t just offer full student loan forgiveness, but also to reform their recruiting policies. They’ve also offered to pay $5 million to go towards further investigation of other frauds. This is a landmark case that is sure to catch the attention of student debt holders across the country. If you want to learn more, give them a call. Give it a shot! But, if you have student debt, hold onto hope.

“If someone feels like they’re eligible for debt forgiveness, they should contact CEC directly and let them know they are part of this class of people and that they should be getting some debt relief as well,” Brnovich said.

Last modified: January 14, 2019