Former Art Institute of Michigan students to receive court-ordered debt relief payment

(WXYZ) — Some students who attended Michigan Art Institutes will receive court-ordered debt repayment, the Michigan Attorney General’s Office announced Monday.

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The payment is in response to the “predatory and deceptive practices of the institutes’ parent company, Dream Center Education Holdings LLC (DCEH),” a statement said.

In Michigan, 28 students will receive a share of $28,929 in debt relief. Also under the March 23 order of the U.S. District Court for the Northern District of Ohio, a total of 123 former students from Colorado, Illinois and Michigan will receive a total of $133,278 in debt relief thanks to the DCEH.

“Many students go on to college in the hope that the degrees they earn will enrich their lives, and they choose to invest in their future by racking up debt,” Nessel said. “Universities and colleges must be held accountable if they fail to keep their end of the bargain by providing students with legitimate degrees and an appropriate education. I’m glad these students are getting some relief after being caught off guard by an entity that didn’t follow the rules.

Michigan art institutes suddenly closed in 2018, leaving students in debt and without degrees. The for-profit schools were previously owned by Education Management Corp.

Additionally, some students who obtained loans to attend Art Institute schools received loan forgiveness.

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