More than 4,500 students of the closed American Career Institute will be eligible for cancellation of federal student loan debt under a deal announced by Massachusetts Attorney General Maura Healey.

The for-profit ACI operated in Massachusetts and Maryland before suddenly closing in 2013.

Healey and U.S. Senator Elizabeth Warren (D-Mass.) worked with the U.S. Department of Education on the deal that will allow former students of ACI to have the balance of their loan debt wiped out and to receive refunds on debt payments already made.

The Boston Herald reported that the deal came after the school was sued by Healey "over fraud allegations and admitted to misleading students."
The U.S. Department of Education announced last week that thousands of additional former students of Corinthian Colleges are eligible to have federal student debt forgiven due to evidence of fraud by the former for-profit school chain.

The government said that "students who were defrauded at 91 former Corinthian Colleges . . . nationwide have a clear path to loan forgiveness under evidence uncovered by the Department while working with multiple state attorneys general."

As a result of the government initiative, students who attended Everest and WyoTech schools in 20 states, including Michigan, can apply for debt relief by completing a form.  The other states covered by the initiative are Massachusetts, California, Illinois, Texas, Georgia, Colorado, Pennsylvania, Florida, Washington, Virginia, Ohio, West Virginia, Minnesota, Nevada, Missouri, Indiana, Wisconsin, Oregon, New York, Utah, Maryland, New Jersey, and Wyoming. 

To date, as part of prior initiatives by the government aimed at providing debt relief to other student victims of Corinthian's fraudulent and predatory operations, more than 8,800 students have been granted debt relief totaling more than $130 million, the government said.

Corinthian Colleges suddenly closed its doors on dozens of its campuses across the nation in April 2015 in the wake of multiple government investigations regarding misrepresentations made to students during enrollment and regarding placement.