Student loans

Virginia AG Miyares gets student debt relief from former for-profit college

WASHINGTON, DC (WRIC) – Virginia Attorney General Jason Miyares, along with attorneys general from 9 other states, have finalized an agreement to forgive the debt of students who attended a fraudulent for-profit university that filed for bankruptcy. in 2019.

Argosy University was a struggling for-profit educational institution with campuses in several states, including one in Northern Virginia. According to court documents, “most Argosy students could not afford their high tuition fees” and were forced to take out private and federally backed loans to cover their expenses.

At the same time, the school failed to inform students of their low post-graduation employment rate and even instructed staff not to comply with disclosure laws. The university has also fraudulently issued debt in some states without obtaining a license to do so.

The school declared bankruptcy in January 2019 and all of its campuses closed soon after in March, with no resources in place to help students suddenly left without an education.

Now, a new agreement has been reached between the ten attorneys general and the companies trying to collect student debts owed to Argosy.

Effective immediately, debt collection companies are prohibited from collecting or enforcing Argosy Legacy Loans, and unpaid loans cannot be counted against student credit scores.

“Choosing which college to attend is a huge decision in a person’s life, and it can come with a financial burden,” VA Attorney General Jason Miyares wrote in a statement. “Argosy University’s misrepresentation to these students in the years leading up to its abrupt closure was unfair.”

This only affects loans issued by the private sector. The status of federal student loans to Argosy University is still uncertain.

The deal is the culmination of a process begun under Miyares’ predecessor, Mark Herring, who also called on the federal government to cancel the loans they issued to Argosy students.