Home News Why This For-Profit College Will Cancel $500 Million Of Student Loans – Forbes

Why This For-Profit College Will Cancel $500 Million Of Student Loans – Forbes

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Career Education Corporation, a major for-profit college operator, has agreed to cancel nearly $500 million of student loans as part of a settlement with 48 states and the District of Columbia.

Here’s what you need to know and how it can affect you.

The Settlement: What Happened

Career Education, which operates the for-profit colleges Colorado Technical University and American InterContinental University and serves approximately 34,000 students, agreed to cancel $493.7 million in student debt for nearly 180,000 former students. The Illinois-based company faced allegations of fraud and deceptive practices, including allegedly misleading students about its job placement rate and actual cost of earning a degree, among other practices.

“[Career Education]’s practices were unfair to students as well as taxpayers who supported federal student loans that were destined to fail,” said Iowa Attorney General Tom Miller, the settlement’s co-lead negotiator, said in a statement. “This agreement not only provides relief to former students but also protects future students and advances our efforts to clean up the for-profit education industry.”

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