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News

1,300 Pennsylvania Students Won't Have To Pay Student Loans Thanks To $2.6M Agreement

Brightwood Career Institute on Derry Street in Harrisburg, Pa.
Brightwood Career Institute on Derry Street in Harrisburg, Pa. Photo Credit: Google Maps

A $2.6 million agreement entered by the Pennsylvania Attorney General's office has alleviated student debt for 1,300 students.

The agreement will result in the cancellation of approximately $2.6 million in private Pennsylvania student loans held by students who attended schools operated by the now-defunct Education Corporation of America, AG Josh Shapiro said.

The defunct corporation abruptly closed due to its loss of accreditation and its failure to meet federal Department of Education financial requirements in December 2018.

ECA operated Brightwood campuses in Philadelphia, Broomall, Harrisburg, and Pittsburgh before it shuttered.

The agreement provides refunds of loan payments back to Pennsylvania borrowers by the Texas-based loan holder Elevation Capital Partners, LLC.

“When Education Corporation of America closed down, it left thousands of Pennsylvanians with no degree and a huge financial burden. Today we’ve reached an agreement, and cancelled millions of dollars in debt for Pennsylvanians,” Shapiro said. 

“Student loan debt is a life-altering hurdle for far too many in our Commonwealth, which is why we’re fighting for borrowers every day.”

Borrowers affected by this settlement will be contacted directly by the Office of Attorney General and do not need to take any steps to receive a refund or have the debts cancelled.

Since taking office in 2017, Shapiro has obtained more than $62 million in debt cancellation for student loan borrowers.

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