SEVERE WX: Winter Weather Advisory - Winter Storm Watch View Alerts
STREAMING NOW: Watch Now
CLOSINGS: View Closings

Hundreds of Iowans freed from student loan debt

Iowa Attorney General Tom Miller.

Part of 48-state settlement with for-profit education company.

Posted: Jan. 3, 2019 12:31 PM
Updated: Jan. 3, 2019 3:27 PM

DES MOINES, Iowa – Students in Iowa will not have to pay back over $1 million in loans thanks to a 49-state settlement with a for-profit education company.

Career Education Corporation (CEC) has agreed to stop trying to collect around $493.7 million owed by 179,529 students across the country. This deal comes after a five-year investigation and negotiations led by Iowa Attorney General Tom Miller and the Connecticut Attorney General’s Office.

“CEC’s practices were unfair to students as well as taxpayers who supported federal student loans that were destined to fail,” says Miller. “This agreement not only provides relief to former students, but also protects future students and advances our efforts to clean up the for-profit education industry.”

715 Iowa students will get relief on a total of $1,424,662 in loans.

CEC also agreed to pay $5 million to the states themselves, with Iowa receiving $257,142.86.

Article Comments

Mason City
Broken Clouds
11° wxIcon
Hi: 15° Lo: 6°
Feels Like: -5°
Albert Lea
Broken Clouds
wxIcon
Hi: 14° Lo: 4°
Feels Like: -3°
Austin
Clear
16° wxIcon
Hi: 16° Lo: 7°
Feels Like: 4°
Charles City
Overcast
16° wxIcon
Hi: 15° Lo: 5°
Feels Like: 2°
Rochester
Overcast
12° wxIcon
Hi: 16° Lo: 6°
Feels Like: 0°
Brutally cold air is on the way.
KIMT Radar
KIMT Eye in the sky

Latest Video

Image

Preventing frozen pipes

Image

Keeping the runways clear

Image

Catholic community conversation

Image

Affordable Housing and the Government Shutdown

Image

North Iowa Bulls' Poczos recalled to NAHL club

Image

North Iowa Bulls' Poczos recalled to NAHL

Image

Tuesday Evening Stormteam 3 Forecast

Image

NIACC's Willems named ICCAC Player of the Week

Image

North Iowa Bulls' Poczos recalled to NAHL team

Image

Southern Minnesotans hit the slopes during winter storm

Community Events