More than 1,000 Kansas students will receive more than $1 million in student loan forgiveness under the terms of a settlement reached today with Education Management Corporation (EDMC).
The loan forgiveness announcement came from Kansas Attorney General Derek Schmidt. It involves 110 schools in 32 states and Canada, including Brown Mackie College in Salina and Lenexa, and The Art Institute in Kansas City, Kan. After receiving numerous complaints from current and former EDMC students, state attorneys general initiated a multi-state investigation in January 2014.
The agreement requires the for-profit college company to forgive $102.8 million in outstanding loan debt held by more than 80,000 former students nationwide. The agreement is expected to provide an average of $1,370 per person in loan forgiveness.
Eligible students will receive a letter from EDMC within 90 days advising them that EDMC will no longer attempt to collect student debt forgiven under the terms of this settlement.
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