SPRINGFIELD, Mass. (WWLP) – The Department of education is forgiving thousands of education loans, after a for-profit school admitted to lying to students, just to scheme them out of millions of dollars.
The U.S department of education is forgiving more than $30-million-dollars in federal student loans for students. A sigh relief for more than 4000 Massachusetts students who attended the American Career Institute, after students found out their student loans would be forgiven.
This comes after Attorney General Maura Healey made the announcement this week, alongside U.S. Senator Elizabeth Warren and former ACI students. The school closed its doors in 2013, after allegations of enrolling students for the sole purpose of taking their federal loan money.
Former ACI students will have roughly $30-million dollars of their loans forgiven by the federal government. They’ll also be entitled to any payments they made on their federal loans.
Nearly 4500 students will be eligible for refunds of debt payments they’ve already made.
Marissa Brueshaber, of Holyoke told 22News, “Well, that’s generous, but I mean, I wouldn’t want to be the student in that position, having to pay all this money and not having anything to show for it, you know.”
The $30-million-dollars will come from money recovered from the American Career Institute and taxpayer dollars.
Tom Charkiewizc, of West Springfield said, “As a taxpayer, I don’t think that I owe them any money to pay for their school. I worked 3 jobs to go to college. I don’t feel like it’s right for me to pay for somebody else’s education.”
Springfield was home to one of five American Career Institute campuses in Massachusetts.