Settlement means forgiving $556 million in student loan debt

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INDIANAPOLIS (WTHR) — Indiana's Attorney General has announced a settlement that is great news for thousands of Hoosiers with student loan debts.

The settlement is with Career Education Corp., which runs campus-based and online programs including American InterContinental University and Colorado Technical University.

CEC has agreed to reform its recruiting and enrollment practices.

More importantly for student, it will not collect $556.5 Million in debts owed by 195,136 students nationally.

That includes 2,702 students from Indiana who will no longer have to pay $5,622,489 in debt.

CEC has closed or phased out many of its schools over the past 10 years. Its brands have included Briarcliffe College, Brooks Institute, Brown College, Harrington College of Design, International Academy of Design & Technology, Le Cordon Bleu, Missouri College, and Sanford-Brown.

The attorneys general alleged that CEC pressured its employees to enroll students and engaged in unfair and deceptive practices. These practices included making misleading statements or failing to disclose information to prospective students on total costs, transferability of credits, program offerings, job placement rates, and other topics.