$130 Million For Student Loan Balances To Be Provided For 7,400 CollegeAmerica Borrowers

The Education Department will provide $130 million for the student loan balances of borrowers from CollegeAmerica in Colorado. The decision came after investigations revealed that the college misled students about salaries and job prospects.

On July 25, the Department of Education announced that it will provide $130 million for the student loan balances of 7,400 borrowers who were enrolled at the CollegeAmerica campuses in Colorado between January 2006 and July 2020.

According to Knott, the decision to forgive the student loan balances came years after the Attorney General of the state investigated whether the CollegeAmerica misled their students about salaries and job prospects. In addition, the Education Department stated that the CollegeAmerica’s parent company, the Center for Excellence in Higher Education (CEHE), also misled the students about the programs and the terms of private loans they offer.

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Student Loan Balances to be Forgiven

According to Douglas-Gabriel, the CEHE is a nonprofit organization that operated several for-profit colleges before it shut down in August 2021. Consequently, the CollegeAmerica discontinued enrolling new students in 2019 and also shut down operations in September 2020.

Nonetheless, the CollegeAmerica and CEHE denied all the allegations against them. In addition, CEHE is also currently suing the Education Department for its treatment of for-profit colleges, especially those that the organization operated.

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