Education Department Announces Thousands of New Loan Discharges
The U.S. Department of Education on Friday announced thousands of new loan discharges for students who attended several closed for-profit colleges.
The discharges are part of a major push to provide loan relief to students that began with the closure of Corinthian Colleges two years ago. Friday’s announcement affects students who attended Corinthian, as well as ITT Technical Institute and American Career Institute (ACI).
Out of about 4,500 students who attended ACI, 650 will receive closed school discharges. The rest will receive a borrower-defense discharge, which requires a finding of fraud or misrepresentation. The for-profit closed in January 2013 and later that year was the target of a complaint by the Massachusetts Attorney General’s office for a range of deceptive practices. The defunct college in June admitted to defrauding students.