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AG Nessel: Sec. DeVos's Automatic Debt Forgiveness for Arts Institute of Michigan Students is the Right Call

LANSING – Michigan Attorney General Dana Nessel today commended U.S. Department of Education Secretary Betsy DeVos for taking the advice of 30 Attorneys General to ensure students impacted by the abrupt closure of 24 Dream Center Education Holdings (DCEH) schools are properly indemnified.

Sec. DeVos in early November agreed to automatically forgive the federal student loan debt for students enrolled in the Arts Institute of Michigan – both Novi and Troy locations – between Jan. 20, 2018 and Dec. 4, 2018. Both schools closed in late 2018. Three other schools were also part of the automatic debt forgiveness action by DeVos.

In addition to automatic debt forgiveness, DeVos also extended the closed school discharge time frame by eight months for students who attended any of the remaining 24 now-closed DCEH schools across the nation. Students who withdrew by June 29, 2018 are now eligible to have their student loans discharged.

The closed school discharge time frame provides for a 100 percent discharge of federal student loan debt for students who were enrolled when the school closed, were on an approved leave of absence when the school closed, or withdrew within 120 days of the school’s closure.

“I’m gratified to see Sec. DeVos heed the call of 30 Attorneys General to cancel the federal loans for students who were left in debt with no degree after the abrupt closure of several Dream Center Education Holdings schools,” Nessel said. “Students impacted by the deceitful actions of this company should not have to spend years in debt for a degree they were promised and never received.”

More information about the student loan discharge process and automatic cancellation of federal student debt for DCEH students can be found here: