For-profit college company required to forgive thousands in Hawaii student loans

For-profit college company required to forgive thousands in Hawaii student loans

HONOLULU (HawaiiNewsNow) - About 181 Hawaii students will have their loans forgiven after a for-profit college company committed what Attorney General Doug Chin calls unfair and deceptive recruitment and enrollment practices.

Through an agreement with Chin and a group of state attorneys general, the Pittsburgh based company will forgive approximately $183,865 in loans.

"This civil enforcement action holds EDMC accountable for what we allege were unfair and deceptive recruitment and enrollment practices," Chin said. "EDMC's practices were unfair to Hawaii students. This agreement will provide relief for them through loan forgiveness and ensure that EDMC will make substantial changes to its business practices for future students."

The agreement also mandates added disclosures to students, including a new interactive online financial disclosure tool; bars misrepresentations to prospective students; prohibits enrollment in unaccredited programs; and institutes an extended period when new students can withdraw with no financial obligation.

Nationwide, the agreement requires the for-profit college company to forgive $102.8 million in outstanding loan debt held by more than 80,000 former students. The agreement is expected to provide an average of $1,370 per person in loan forgiveness.

Those who will receive automatic relief related to outstanding EDMC institutional loans must have been enrolled in an EDMC program with fewer than 24 transfer credits; withdrew within 45 days of the first day of their first term; and their final day of attendance must have been between January 1, 2006 and December 31, 2014.

EDMC operates 110 schools across 32 states and Canada through four education systems, including Argosy University, The Art Institute, Brown Mackie College and South University.

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