On September 30, 2021, the Minnesota Attorney General (“Minnesota AG”) announced that a federal bankruptcy court had approved $23.6 million in student debt relief and $15.8 million in restitution for students of two for-profit universities that allegedly engaged in consumer fraud and illegal lending practices.
The settlement, originally announced in March 2021, resolved allegations that the universities misled students about potential program benefits and caused students to take out substantial student loans to enroll. The Minnesota AG also alleged that the universities violated the state’s usury law by charging unlawful interest rates.
The bankruptcy court’s approval of the settlement allows the Minnesota AG to begin distributing the relief and restitution to former students. The determination brings final resolution to the suit, which was first filed in 2014, and has spanned two trials, several appeals, and the bankruptcy filing.