HARRISBURG, Pa. (KDKA) — The Pennsylvania Office of Attorney General announced almost $3 million in student loan debt is being wiped clean.
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Josh Shapiro said he reached an agreement with the now-defunct Education Corporation of America to cancel $2.6 million in private loans for 1,300 students. The company ran five former Brightwood Career Institute locations in the state, including one in Pittsburgh.
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“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,” said Attorney General Shapiro in a release. “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.”
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Shapiro said borrowers impacted by the settlement will be contacted directly by his office. Those borrowers do not need to take any steps to receive a refund or have the debts canceled.