The Education Department and the Colorado attorney general on Tuesday announced $130 million in automatic debt discharge for 7,400 Colorado student loan borrowers who attended CollegeAmerica, YahooFinance.com reported. Based on evidence gathered by the Colorado attorney general’s office, the Education Department found that CollegeAmerica’s parent company — the Center for Excellence in Higher Education (CEHE) — made misrepresentations about graduates’ salaries and employment rates, its programs, and the terms of private loans it offered borrowers. Eligible borrowers were enrolled at Colorado-based locations of CollegeAmerica from Jan. 1, 2006, to July 1, 2020. It doesn’t apply to borrowers who attended CollegeAmerica campuses outside of Colorado, senior department officials said in a press call. Discharge also only applies to federal student loans, not private loans or commercial FFEL loans.
