Denver District Court judge orders CollegeAmerica to pay $3 million in civil penalties to state and forgive loans for deceiving students
Aug. 21, 2020 (DENVER, Colo.)—Attorney General Phil Weiser released the following statement regarding today’s court judgment in State of Colorado v. CollegeAmerica:
“I am pleased that a Denver District Court judge today found that CollegeAmerica’s marketing and admissions operations violated state consumer protection and consumer lending laws. CollegeAmerica, a for-profit entity, knowingly took advantage of students in Colorado by luring them into high-priced, low-quality programs with promises of high-earning potential and job placement that it knew were not attainable. In so doing the school unconscionably enrolled students in its private student loan program, leaving them saddled with crushing debt and no chance of career advancement.
“CollegeAmerica systemically cheated vulnerable students in our state. It is now being held accountable. Protecting students from predatory behavior—particularly from schools looking to make a profit at their expense—and helping Colorado students navigate through student loan burdens will continue to be a priority of the Attorney General’s Office.”
The Colorado Student Loan Servicers Act created a student loan ombudsperson in the Colorado Department of Law as a resource for student loan borrowers throughout the state. The ombudsperson is responsible for receiving, reviewing, and attempting to resolve complaints from student loan borrowers. Contact the Colorado Attorney General’s Student Loan Ombudsperson by email at email@example.com, by filing a complaint at www.coag.gov/studentloans, or by calling (720) 508-MySL (6975).