Home News The Education Department is cancelling $10.8 million in student loan debt for students at two shuttered schools – Market Watch

The Education Department is cancelling $10.8 million in student loan debt for students at two shuttered schools – Market Watch

25
0

The loan cancellation might not cancel a lawsuit though

More than 1,500 former students at two shuttered schools are getting a fresh start on their finances after the U.S. Department of Education said it will void their student loans.

The department will cancel approximately 4,000 loans for ex-students at the Art Institute of Colorado and the Illinois Institute of Art, amid scrutiny from a Congressional committee and a class-action lawsuit alleging the department wrongfully let the schools operate after losing their accreditation.

Overall, the cancelled loans are worth $10.8 million , the Education Department said. Another 285 borrowers could qualify for a discharge, in which case the overall loan cancellation could be $16.1 million.

“By canceling these students’ loans and restoring their Pell eligibility, as well as extending the closed school discharge period, we hope that these impacted students will now have the tools and resources they need to complete their education,” Secretary of Education Betsy DeVos said in a statement.

View Original Source

tags:

LEAVE YOUR COMMENT

Your email address will not be published. Required fields are marked *