Education Department to forgive $415 million in student debt for nearly 16,000 borrowers who were misled by colleges

The Department of Education has approved $ 415 million in protecting borrowers for nearly 16,000 alumni after new evidence showed that their schools could have misled them into borrowing. The latest round of loan forgiveness brought the total amount approved by the department to about $ 2 billion for more than 107,000 borrowers.

“If colleges and career schools put their interests above students, we will not look the other way,” Federal Student Aid Director General Richard Cordray said Wednesday.

University of DeVry

About 1,800 former DeVree University students will be forgiven $ 71.7 million after the Department of Education reviewed “vast amounts of evidence” that the university has repeatedly misled prospective students.

DeVry is accused of making inaccurate allegations from 2008 to 2015 that 90% of graduates who actively sought work got a job in their fields of study within six months of graduating. But the Department of Education said the true percentage is about 58%, and school officials have reportedly known about inaccurate statistics for years.

The Department of Education said it expects the number of permits from the New York school to grow.

Westwood College

Similarly, Westwood College is accused of falsely reporting between 2002 and 2015 that its graduates had employment rates of 80% and above “and that graduates would receive a salary of $ 50,000 or more,” the Department of Education said. The school also allegedly stated that if students do not receive employment within six months of graduating, it will help pay their bills.

“The department has no evidence that Westwood has kept its promise,” the Department of Education said. “In fact, his employment rates were greatly inflated, and his salary promises were based on national federal data, while true Westwood graduates often received half or only a quarter of that amount.”

Approximately 1,600 borrowers from the school will be forgiven $ 53.1 million, and the Department of Education said it was identifying previously denied cases that could be recovered and approved with evidence on Wednesday.

This is the third such finding against the now closed school of Denver, Colorado.

ITT Technical Institute

About 130 students from the ITT Technical Institute will be forgiven $ 3.1 million in debt after the Department of Education estimated that the school inaccurately informed students that its nursing care program would receive program accreditation.

The school is accused of repeatedly failing to receive accreditation due to lack of resources, unqualified teachers, and non-compliance with standards.

This is the fourth conclusion of the school.

Minnesota School of Business / Globe University

The Department of Education found that the Minnesota School of Business and / or Globus University misled students in criminal justice programs by telling them that after graduation they could become a Minnesota State Police officer or parole officer. But the program did not have the proper accreditation or certificates for students to move on to such roles.

In this way, students will receive a full category of Borrower Protection. The Department of Education has approved about $ 3 million for the discharge of 270 students.

Students are being discharged from the school for the second time.

Other schools

More than 11,900 former students who have attended institutions including Corinthian colleges and Marinelle beauty schools will receive $ 284.5 million as a discharge, the education department announced Wednesday.

“Students are counting on their colleges to be true,” said Education Minister Miguel Cardona. “Unfortunately, today’s findings show too many cases of students being misled into loans at institutions or programs that could not deliver on what they promised.”

.

Leave a Comment