Dept. of Education erasing $150 million worth of student debt after massive campus closures

Dept. of Education erasing $150 million worth of student debt after massive campus closures
Virginia College has closed due to a loss of accreditation from the Accrediting Council for Independent College and Schools. (Source: NBC12)

COLUMBUS, GA (WTVM) - The U.S. Department of Education is set to erase $150 million worth of student debt.

Officials will do so thanks to an obama-era rule called “the borrower defense to repayment” that helps to benefit students who were taken advantage of by for-profit colleges.

About 15,000 lenders will benefit from this move after the schools they were enrolled in shut down unexpectedly.

This comes after Education Corporation of America, a parent company that owns campuses across the country, announced that many of their operations would discontinue in December of 2018.

The damaging effects were felt by many Columbus students who attended the local Virginia College as it closed this December too.

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