Student Loan Forgiveness Settlement and Credit Reporting

Consumer Privacy Increasingly at Risk
November 26, 2018
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Student Loan Forgiveness Settlement and Credit Reporting

Sullivan University and Career Education Corp. are agreeing to forgive $4,000,000 in student loan debt for Kentucky consumers and former Spencerian College students. The settlement arises out of suits filed by the Kentucky Attorney General.

Nearly 700 Kentucky and Indiana residents are affected by the settlement. The Attorney General had alleged that the college engaged in misleading statements or failing to disclose information to prospective students on total costs, transferability of credits, program offerings, and job placement rates. Information from the Attorney General’s office is available here: https://kentucky.gov/Pages/Activity-stream.aspx?n=AttorneyGeneral&prId=693

As part of the settlement, third-party debt collectors will stop collections on all Career Education Fund loans, including wage garnishments. Lawsuits related to default on a Career Education Fund loan will be dismissed. Credit reporting regarding the debt must be corrected. And the university must make free transcripts available to any student with a Career Education Fund loan for a period of three years from the date of the settlement.

If you are a former student with a Sullivan or CEC student loan and have questions about how your rights may be affected, please call us.

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