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Students of for profit college to see $30M in loans forgiven

BOSTON _ Former students of the now-shuttered American Career Institute will have more than $30 million in federal student loans forgiven under a deal announced by Massachusetts’ attorney General.

Attorney General Maura Healey asked the U.S. Department of Education to cancel the loans after her office sued the for-profit school over fraud allegations and the school admitted misleading students.

The decision announced Friday means nearly 4,500 students will have the balance of their loan debt wiped out and will be entitled to refunds for debt payments they’ve already made.

Healey and fellow Democrat, U.S. Sen. Elizabeth Warren, said ACI preyed on students to get access to federal student loan dollars and then failed to deliver any meaningful education or career help.

The school operated in Massachusetts and Maryland before closing in 2013.