This college just cancelled $2.1 million of student loans.
Here’s what you need to know.
Ten attorneys general announced a bipartisan agreement that will cancel nearly $2.1 million in student loans (“institutional debt”) that students borrowed from Argosy University. Here are the details and what it means for your student loans.
Student loan cancellation: the details
Here are the details of this latest student loan cancellation:
- cancel $2.1 million in student loans (”institutional debt”) at 12 campuses and on-line;
- includes financial relief for students in multiple states (such as $90,000 for Illinois students and more than $150,000 for Georgia students);
- no further collection of student loan debt; and
- no further negative credit reporting.
“Students of Argosy University, through no fault of their own, have been left with debt and even negative credit ratings – but not the degrees they were promised,” Raoul said. “I am pleased with this agreement that provides some relief to those students and holds Argosy accountable to the students abandoned when the school abruptly closed.”
Attorneys General from Arizona, Colorado, Florida, Georgia, Hawaii, Minnesota, Tennessee, Utah and Virginia joined in the settlement. The settlement agreement will be filed in the Ohio federal court overseeing the receivership. Argosy closed in 2019.
The allegations against Argosy
According to the agreement, Raoul alleged that when Dream Center Education Holdings purchased Argosy in 2017, the company:
- falsely marketed the school to prospective students as a “nonprofit” institution;
- misled students about their ability to obtain degrees;
- provided misleading and incomplete information leading up to the school’s ultimate closure; and
- issued “institutional loan debt” to students who were enrolled based on those misleading marketing and recruitment practices.
What to do if your college misled you
If your college or university misled you, then it’s time to act. You can contact the U.S. Department of Education, your state education department, your state attorney general, the Federal Trade Commission (FTC) or the Consumer Financial Protection Bureau (CFPB) to file a complaint. You can also get student loan cancellation through borrower defense to repayment, which is an Obama-era rule that protects student loan borrowers who were misled by their college or university.
With student loan relief ending in 60 days, it’s important to have a game plan for student loan repayment. That means you should evaluate all your options to find the best strategy that works for your unique financial situation.
Here are some popular ways to pay off student loans faster: