The state of Pennsylvania has reached an agreement with Education Corporation of America to cancel $2.6 million in student loan debt after the company running several schools closed its doors.
Attorney General Josh Shapiro announced the deal on Tuesday.
"When Education Corporation of America closed down, it left thousands of Pennsylvanians with no degree and a huge financial burden. Today we've reached an agreement, and cancelled millions of dollars in debt for Pennsylvanians," said Shapiro. "Student loan debt is a life-altering hurdle for far too many in our Commonwealth, which is why we're fighting for borrowers every day."
The closure affected 1,300 students who attended schools, including Brightwood Career Institute locations, that were run by the company.
Education Corporation of America operated schools in Pittsburgh, Philadelphia, Broomall and Harrisburg.
They closed in December of 2018 after losing accreditation and it failed to meet federal financial requirements of the Department of Education.
Shapiro's office said no action is needed by the students affected and that they will be contacted directly by the office.



