$130 Million in Student Loan Balances of 7,400 CollegeAmerica Borrowers To Be Forgiven

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 U.S. Department of Education announced that it will forgive $130 million of student loan balances. These student loan balances are the debts of 7,400 borrowers enrolled at the CollegeAmerica schools in Colorado between January 2006 and July 2020.

According to Haslett, the resolution to forgive the student loan balances was decided years after the Attorney General of Colorado investigated the deception of CollegeAmerica about salaries and job prospects to their students. In addition, the U.S. Department of Education announced that the Center for Excellence in Higher Education (CEHE), CollegeAmerica’s parent company, also deceived the students about the programs and private loans they provide.

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Student Loan Balances to be Forgiven

According to Knott, the CEHE is a nonprofit organization that administered several for-profit colleges before it ceased its operations in August 2021. As a result, the CollegeAmerica suspended its enrollment of new students in 2019 and ceased its operations in September 2020 as well.

Nonetheless, the CEHE and the CollegeAmerica denied all the accusations against them. Furthermore, the CEHE is also filing a lawsuit against the U.S. Department of Education for its conduct toward for-profit colleges, particularly those that the CEHE administered.

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