The Attorney General for the State of Florida, Pam Bondi, announced a global settlement with Education Management Corporation (EDMC), the second largest for-profit college company in the states. The overall agreement requires the company to forgive over $100 million in outstanding student loan debt held by more than 80,000 former students. Those who will receive relief from the settlement have to have been enrolled in a EDMC program with less than 24 transfer credits, withdrew within 45 days of the first day of their first term, and their last day of attending school must have been between 6/1/2006-12/31/14.
Many students are graduating college nowadays with a mountain of debt, and they are finding it increasingly hard to follow through on their payment schedules. Currently, one in ten graduates will accumulate more than $40,000 in debt, which negatively impacts both the student borrowers and the economy. According to the Consumer Financial Protection Bureau, debt accumulated by students has reached a new mile stone, crossing the $1.3 trillion mark —a number that represents 6 percent of the total national debt. Though the overall outlook may appear grim, there was some headway made with the recent student loan debt forgiveness.
One of the features in the settlement was EDMC’s obligation to forgive over $6.5 million in loans for more than 4,500 former Florida students. EDMC has 7 campuses in the State of Florida, which operate out of Miami, Fort Lauderdale, West Palm, Tampa, Sarasota, and Jacksonville.
$100 million may seem like a drop in the bucket towards the $1.3 trillion debt that current/former students have incurred, but the relief will benefit those former students, and help improve economic conditions of their home towns.
If you are struggling with your loan payments, contact a loan modification lawyer in Miami today.