Defrauded students to receive $30M in loan forgiveness

The 4,500 students will also be eligible for refunds

BOSTON (WWLP) – Nearly 4,500 Massachusetts students who attended the American Career Institute will have more than $30-million in federal student loans wiped clean.

Massachusetts Attorney General Maura Healey made the announcement Friday alongside U.S. Senator Elizabeth Warren and former ACI students.

“They targeted students to get them to sign on the dotted line so they could take those student loans, take taxpayer money. They didn’t care what kind of education these students were getting. They just wanted their hands on the money,” said Attorney General Maura Healey.

Springfield was home to one of five American Career Institute campuses in Massachusetts. They abruptly closed their doors in 2013 after allegations of enrolling students for the sole purpose of taking their federal loan money.

Senator Elizabeth Warren applauded the decision on Friday. She said, “ACI even admitted that it had deceived students; that it had lied on official records. It had charged students a ton of money for worthless degrees.”

The 4,500 students will also be eligible for refunds of debt payments they have already made. “I won’t have this $15,000 debt hanging over my head,” said former ACI student, Danielle Ramos.

The $30-million will come from money recovered from the American Career Institute and taxpayer dollars. This is the first time the federal government has agreed to cancel loans for a group of defrauded students.