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.