Colorado Attorney General Phil Weiser celebrated a significant triumph as the U.S. Department of Education announced $130 million in Colorado student grant for 7,400 students who attended CollegeAmerica’s Colorado-based locations between January 1, 2006, and July 1, 2020.
Colorado Student Grant Delivers $130 Million Loan Forgiveness
The Department’s investigation revealed that the parent company of CollegeAmerica, the Center for Excellence in Higher Education (CEHE), engaged in widespread misrepresentations regarding graduate salaries, employment rates, program offerings, and loan terms. Attorney General Weiser took the Colorado student grant lead in a comprehensive multi-year investigation and lawsuit against CEHE and its leadership, ultimately exposing their deceptive practices. In August 2020, a Denver District Court ruled that CollegeAmerica’s marketing and admissions operations violated state consumer protection and consumer lending laws. Building upon this victory, Weiser requested the Colorado student grant and the Department in June 2022 to cancel loans for qualifying students and return funds paid by former students to the Department of Education due to CEHE’s misleading representations.Federal Student Aid Chief Richard Cordray expressed gratitude for the close collaboration between the Department of Education and Attorney General Weiser’s office, which paved the way for the Colorado student grant. Cordray emphasized the ongoing efforts to deliver the Colorado student grant.
Colorado Student Grant Plays Key Role in Debt Relief for CollegeAmerica Borrowers
The Colorado Student Grant played a pivotal role in this endeavor, aiding Weiser’s mission to defend Colorado student loan borrowers and hold predatory schools and student loan servicers accountable. Since 2019, the Department of Law has successfully secured over $320 million in refunds or debt relief for more than 23,400 Coloradans, with the Colorado Student Loan Servicers Act enhancing support for borrowers through the establishment of a student loan ombudsperson in the attorney general’s office. The student loan ombudsperson serves as a vital resource for borrowers throughout the state, receiving, reviewing, and working to resolve complaints from student loan borrowers, thereby ensuring transparency and fairness in the student loan system. With the successful implementation of the Colorado Student Grant, Attorney General Phil Weiser has demonstrated his commitment to supporting the educational aspirations of Colorado students while safeguarding their interests from unscrupulous practices.