Attorney General Wipes Out $218K in Student Debt After Pittsburgh Career Institute Closure

DebtImage by Mary Pahlke

PENNSYLVANIA — In a significant victory for dozens of students left in the lurch by the sudden closure of Pittsburgh Career Institute (PCI), Pennsylvania Attorney General Michelle Henry announced on Wednesday that an agreement had been reached to liberate these students from $218,000 in outstanding debt balances.

The Pennsylvania Office of Attorney General has been an active advocate for students burdened with loan debt, securing more than $205 million in private and federal student loan debt cancellation since the beginning of 2020. This latest move is another testament to its commitment to protecting Pennsylvanians from unfair financial burdens.

“The sudden closure of Pittsburgh Career Institute left many students with outstanding balances,” said Attorney General Henry. “It’s only right that these students are not on the hook for those balances. My office is committed to helping students who spend much money, time, and effort on higher education and do not receive the promised benefits.”

Pittsburgh Career Institute, known for providing health care-related educational programs as well as a veterinarian assistant program, announced its abrupt closure in November 2022. The closure came after the Department of Education decided to no longer accept the institutional accreditor for PCI —the Accrediting Council for Independent Colleges and Schools. Despite being given 18 months to find a new accreditor, PCI chose to close its doors, leaving less than 200 enrolled students in the dust.

The recent agreement not only wipes out the $218,000 in alleged student debt balances but also prevents the collection or transfer of this debt. It further requires compliance with the Pennsylvania Fair Credit Extension Uniformity Act, which governs collection activities, and the Pennsylvania Unfair Trade Practices Act.

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