Former Art Institute of Michigan students to receive court ordered debt relief payment

Posted at 5:11 PM, Aug 17, 2020
and last updated 2020-08-17 17:11:33-04

Some students who attended the Art Institutes of Michigan will receive a court ordered debt relief payout,The Michigan Attorney General's office announced Monday.

RELATED: Students, staff upset at Art Institute closing

The payout is in response to "predatory and deceptive practices of the institutes' parent company, Dream Center Education Holdings LLC (DCEH)," a release states.

In Michigan, 28 students will receive a share of $28,929 in debt relief. Also under the March 23 order from the U.S. District Court Northern District of Ohio, a total of 123 former students in Colorado, Illinois and Michigan will receive a total $133,278 in debt relief as a result of DCEH.

“Many students pursue their college educations with hope that the degrees they earn will enrich their lives, and they choose to make an investment in their futures by accumulating debt,” Nessel said. “Universities and higher education institutions must be held accountable if they’re not holding up their end of the deal by providing students with legitimate degrees and an appropriate education. I’m pleased these students are being provided some relief after being blindsided by an entity that was not playing by the rules.”

The Art Institutes of Michigan closed suddenly back in 2018, leaving students with debt and no degree. The for-profit schools were previously owned by Education Management Corp.

Additionally, some students who obtained loans to attend the Art Institute schools had loan forgiveness.