7,400 Students Who Attended CollegeAmerica From 2006 To 2020 Automatically Get $130 Million Debt Forgiveness

CollegeAmerica Attendees From The Year 2006 To 2023 Loan Forgiven

President Joe Biden has announced student loan forgiveness
President Joe Biden has announced student loan forgiveness (Photo: Longmontleader)

President Joe Biden has announced that 7,400 debtors who attended the Colorado-based, now-defunct CollegeAmerica for-profit college will have their $130 million in student debt erased.

After misleading students about their financial and employment prospects, CollegeAmerica was shut down in 2020. Students who enrolled at the facilities of Colorado-based CollegeAmerica between January 1, 2006, and July 1, 2020, will automatically be exempt from debt. (Read the full article at LONGMONTLEADER)

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Despite making claims to help working individuals acquire degrees, CollegeAmerica came under fire from state politicians and education professionals. The Accrediting Commission of Career Schools and Colleges (ACCSC) placed CollegeAmerica on probation in 2018 due to a program that was not conducive to student success.

The U.S. Department of Education’s findings reveal that the parent company of CollegeAmerica (CBSNEWS), the Center for Excellence in Higher Education, misrepresented the salaries, employment rates, and private loan terms of its graduates. Colorado Attorney General Phil Weiser provided evidence supporting these claims, alleging that CollegeAmerica enticed students with false promises of high salaries and job prospects. 

Biden Administration Initiates A Plan For Broad-Based Student Loan Forgiveness for CollegeAmerica Students

President Biden condemned the actions of CollegeAmerica, stating that its borrowers were “lied to, ripped off, and saddled with mountains of debt.” This debt relief measure comes after the Supreme Court invalidated the Biden administration’s plan for broad-based student loan forgiveness, which aimed to erase up to $20,000 in debt for 40 million borrowers. After a three-year hiatus, loan payments will start up again in October.
The White House has authorized $14.7 billion in debt relief for 1.1 million student loan borrowers who attended universities that exploited them or abruptly closed, including the most recent announcement, with CollegeAmerica being one of the institutions covered by this measure.

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