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CollegeAmerica Colorado’s Rip Off of $130 Million in Student Loans To Be Cancelled By Biden Administration

CollegeAmerica Colorado [Photo: CBS News]
CollegeAmerica Colorado [Photo: CBS News]

The three campuses of CollegeAmerica Colorado were accused of ripping off $130 million in student loans. Fortunately, the administration of U.S. President Biden decided to cancel the loans of 7,400 borrowers.

Biden Cancels $130 Million Ripped Off by CollegeAmerica Colorado [Photo: ABC News]

Biden Cancels $130 Million Ripped Off by CollegeAmerica Colorado [Photo: ABC News]

The CollegeAmerica Colorado was accused of falsely advertising that students who enrolled at their schools would earn high salaries post-graduation despite graduates actually earning an average of $25,000 only. In addition, the CollegeAmerica Colorado was also accused of misleading students about a 70% job placement rate instead of the actual 40%.

According to Haslett, in 2021, the three campuses of the CollegeAmerica Colorado have completely ceased their operations after being sued by the state. Nonetheless, in 2022, the Center for Excellence in Higher Education (CEHE), which administered the CollegeAmerica Colorado, also filed a lawsuit against the U.S. Department of Education, accusing them of improperly targeting their schools.

READ ALSO: Biden Student Loan Debt Relief Erases $39 Billion In Debt – Do You Qualify For The Debt Cancellation?

CollegeAmerica Colorado Borrowers’ Loans

According to Brundin, on July 25, the administration of U.S. President Joe Biden announced that it will cancel $130 million in student loans of 7,400 borrowers who enrolled between 2006 and July 1, 2020 in CollegeAmerica Colorado.

Further reports say the CollegeAmerica Colorado borrowers will have their student loans cancelled whether they have filed a repayment application or not. The repayment application is a form that borrowers can fill out to report schools that mislead their enrollees.

READ ALSO: Student Borrowers Face Debt Crisis After Court’s Ruling; Congress And Biden Urged To Take Action

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