With a new settlement with state attorneys general, private student loans will be forgiven for over 6,000 students in Arizona that attended a chain of for-profit colleges.
In a statement, Attorney General Mark Brnovich said that affected Arizona students will receive over $22 million.
Career Education Corp. engaged in “unfair and deceptive practices” that included misleading students about costs, job placement rates, how credits would transfer to other institutions, accreditation and what programs were offered.
The company includes four campuses located across Arizona: Le Cordon Bleu, Sanford-Brown College, Collins College and American InterContinental University.
The company denied any wrongdoing in a statement.
In 2017, Le Cordon Bleu closed its Scottsdale campus, while Sanford-Brown and Collins College both closed their Phoenix campuses in 2012. American InterContinental University continues to offer online degrees in Arizona.
The settlement applies only to private loans with the school, meaning that it does not apply to federal loans or those held by other companies.
The debt relief settlement will assist students who were “saddled with large debts and degrees that were less useful than CEC led its students to believe.”
The settlement helps ensure that for-profit colleges “better represent the truth to prospective students in the future.”