Student Loan Forgiveness: 7,400 Students Will Receive Payments From CollegeAmerica!

Student loan forgiveness is a long-awaited relief for 7,400 former students who attended CollegeAmerica, a chain of trade schools in Colorado.

Student Loan Forgiveness: 7,400 Students Will Receive Payments From CollegeAmerica! (PHOTO: Marca.com)

Student Loan Forgiveness

The U.S. Department of Education has announced that these students will no longer be required to repay their loans, providing them with significant financial relief, CBS News reported.

CollegeAmerica enticed students with false promises, including inflated job placement figures and deceptive financial aid offers. This led to a heavy burden of student loans for many individuals who attended career college. Complaints about the school’s practices accumulated, prompting an investigation by the Colorado Attorney General.

Students like Tiffany Hoffman spoke out about feeling cheated by the institution and want student loan forgiveness. The school’s tactics resulted in students owing substantial amounts of money for their education. For instance, Celesta Manspeaker owed about $45,000, a significant financial burden.

Fortunately, the U.S. Department of Education is now stepping in to address the situation. U.S. Secretary of Education Miguel Cardona emphasized the government’s commitment to holding bad actors accountable and protecting first-generation college students from exploitation. CollegeAmerica was successfully sued by the Colorado Attorney General for taking advantage of its students and wanting student loan forgiveness.

As a result of the legal action and investigation, CollegeAmerica closed its doors in 2020. Now, the Department of Education has taken action to make things right for the affected students and student loan forgiveness. They will no longer have to repay their loans, effectively providing them with a clean slate.

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Student Loan Forgiveness Program

It’s important to note that the recent Supreme Court decision rejected the Biden administration’s broader college student loan forgiveness program. However, $15 billion has been approved to assist those who were taken advantage of by colleges like CollegeAmerica or experienced abrupt closures.

The Department of Education will reach out to the affected students directly, so there is no need for them to apply for student loan forgiveness. This move signifies progress in holding institutions accountable and providing much-needed relief for students burdened by deceptive practices.

READ ALSO: $400 Billion Student Loan Forgiveness Program’s Fate In Supreme Court’s Hands As Millions Of American Borrowers Wait Nervously