Blog Enforcement Watch April 04, 2016

For-Profit Education Company Will Forgive $118,865 in Former Hawaii Student Loan Debt

On March 23, the Hawaii Attorney General (AG) announced that a consent judgment had been entered in Hawaii state court between a group of state attorneys general and a for-profit education company, under which the company will forgive approximately $118,865 in student loans for former Hawaii students.

As previously covered by Enforcement Watch, the company agreed to forgive $102.8 million in student loans nationally as part of a consent judgment filed simultaneously by 39 state attorneys general.  In addition to the loan forgiveness, the company agreed to cease making misrepresentations to students; provide additional disclosures; stop enrolling students in unaccredited programs; implement a new interactive online financial disclosure tool (currently under development by the CFPB and state attorneys general) and extend the time period in which students can withdraw with no financial obligation, among other remedies.