Deceived Students Of CollegeAmerica In Colorado To Get $130 Mln In Debt Relief

The U.S. Department of Education has canceled $130 million in debt for thousands of student borrowers who attended CollegeAmerica in Colorado.

As per a directive issued by the department, 7,400 students who enrolled at the Denver, Fort Collins and Colorado Springs campuses of CollegeAmerica during 2006-2020 will no longer have to pay the remainder of their federal student loans.

The amount of money that they have already paid back will be refunded.

“This announcement means a clean slate for thousands of students hurt by CollegeAmerica’s widespread misconduct,” said the U.S. Department of Education’s federal student aid chief Richard Cordray.

An investigation conducted by the Colorado attorney general’s office found that CollegeAmerica’s parent company, the Center for Excellence in Higher Education (CEHE), made widespread misrepresentations about the salaries and employment rates of its graduates, the programs it offered, and the terms of a private loan that it offered.

The college was shutdown after the fraud practice was detected.

“These borrowers were lied to, ripped off, and saddled with mountains of debt,” President Joe Biden said in a statement on the Student Debt Relief action in Colorado.

“While my predecessor looked the other way when colleges defrauded students and borrowers – I promised to take this on directly, and provide borrowers with the relief they need and deserve,” he said in apparent reference to former President Donald Trump.

“As long as I am president, we will never stop fighting to deliver relief to borrowers, hold bad actors accountable, and bring the promise of college to more Americans,” Biden added.

The Biden Administration has so far approved $14.7 billion in relief for 1.1 million borrowers whose colleges took advantage of them or closed abruptly.

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