Local 'for-profit' college students could see debt relief

Students of for-profit colleges in Illinois and Indiana could now get some debt relief thanks to a settlement reached by Illinois Attorney General Lisa Madigan and attorney generals from 48 other states.

The business behind several "for profit" schools, including Schaumburg-based Career Education Corporation, has agreed to forego collecting more than $490 million in debts owed across the nation, averaging out to about $2,800 per student. Almost 17,000 students in Illinois may see relief.

"CEC students in Illinois and across the country deserve this relief after the deception they endured as a result of CEC's fraudulent actions," Madigan said in a statement. "Today's settlement ensures the company treats students the way they should have been all along - with honesty and respect for their futures."

CEC has "expressly denied any allegations of wrongdoing or liability," according to a statement on its website.

In 2015, Consumer Investigator Jason Knowles reported state action being taken against three of the company's schools. Its popular "Le Cordon Bleu" culinary school had a Chicago location before closing campuses nationwide.

Former students with debt relief eligibility questions can read more about the settlement on Madigan's office's website or contact CEC.