AG Healey Calls for Loan Debt Forgiveness for Students of Fraudulent School in Woburn

WOBURN, MA — Attorney General Maura Healey is calling on the federal government to forgive millions in student loans for students of a fraudulent for-profit school with a Braintree location. Tuesday, Healey submitted a formal application to the U. S. Department of Education to cancel loans taken out by Massachusetts students deceived and abused by the American Career Institute, a former for-profit school that abruptly closed in 2013.

According to the attorney general's office, 4,400 students attended the school's five Massachusetts locations between 2010-13, with a total debt of about $30 million.

“Thousands of students who took out loans to attend these predatory, low-quality programs are legally entitled to immediate forgiveness today,” Healey said in a release. “Not only did this school fully admit to lying to its students, it left them with millions of dollars of debt and no real career training. I urge the Department to utilize its power to finally get these students the long-overdue relief they deserve.”

The American Career Institute was located in Braintree, Cambridge, Framingham, Springfield, and Woburn. They suddenly closed in 2013 after being unable to obtain the credit needed to remain open.

Later that year, Healey sued ACI for deceiving students and falsifying documents. In June, the for-profit school admitted to "knowingly overstating the employment prospects for its graduates; falsifying student signatures, enrollment records, attendance, and grades; and using unlicensed instructors, inadequate books and instructional materials, valueless internships and providing no meaningful career placement services."

Former ACI students who may be eligible for relief are encouraged to call the Student Loan Assistance Unit Hotline at 1-888-830-6277 or by complete the ACI Student Contact Information Update Form.