For-profit institution forgives $1.5 million in South Dakota student loans

RAPID CITY, SD — Career Education Corporation, or CEC, has agreed to forgive more than $493.7 million in debts owed by students across the US, including over $1.5 million owed by South Dakota students.

CEC is a postsecondary education provider that formerly owned a number for-profit schools, including Brooks Institute, Le Cordon Bleu, International Academy of Design & Technology and many more.

It’s closed many of those schools over the past 10 years, but still offers online courses through American InterContinental University and Colorado Technical University.

The loan relief settlement comes at the conclusion of a five year investigation into the CEC, which was accused in 2014 of predatory practices that left students with debt that they could not repay.

The investigation alleged that CEC made deceptive statements to students about program costs, job placement rates, licensure requirements, credit transferability and other matters.

CEC denied the allegations, but agreed to a settlement in order to resolve the case.

Along with forgiving nearly half a billion in student debt across the nation, the company has agreed to pay $5 million to the group of states that initiated the investigation. This includes $50,000 to South Dakota.

1,011 students from South Dakota have qualified for debt relief through the settlement.

Former students of a CEC institution can check their eligibility for loan forgiveness by contacting CEC by phone or email.

 

Categories: Local News, National News, South Dakota News

AlertMe