SPRINGFIELD, Mass. (WWLP) – Thousands of people who attended the former American Career Institute have qualified for student loan forgiveness.
The American Career Institute is accused of defrauding students out of thousands of dollars in tuition and fees.There were five campuses in Massachusetts, including one in Springfield.
The federal government will forgive $30 million in federal student loans for 4,500 people who attended the school in Massachusetts between 2010 and 2013. The announcement comes after ACI admitted to misleading thousands of students, by lying about job placement rates and hiring instructors who weren’t authorized to teach.
The school was also found guilty of falsifying the signatures of students and pressuring them to take out loans. By the time the school closed abruptly in 2013, they had already collected more than $30 million in federal student aid.
Massachusetts Attorney General Maura Healey won a judgement against ACI in June.
The Department of Education said former students should start to receive emails this week notifying them that their loans are being forgiven or repaid. About 650 of the students who were still attending ACI when it closed, have already gotten their money back and their loans forgiven.
Money being paid back to eligible students will come from money recovered from ACI and taxpayer dollars.