Student loans canceled for those who attended now-defunct career institute

PITTSBURGH — Students who borrowed money to go to a now-defunct career institute will not have to pay back the loan.

Brightwood Career Institute had five locations in Pennsylvania, including Pittsburgh.

Attorney General Josh Shapiro’s office made a deal, which resulted in the cancellation of $2.6 million in private student loans.

>> RELATED STORY: Former Brightwood students struggling to locate transcripts

The agreement with the Texas-based debt buyer, Elevation Capital Partners, LLC, permanently prevents the company from engaging in any collection efforts related to these students’ accounts.

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Student borrowers included in the settlement will be contacted directly by the attorney general’s office and do not need to take any steps to receive a refund or have their debts canceled.

Those were held by 1,300 students who went to the school.

Technical school reaches out to students blindsided by sudden closure of Brightwood Technical school reaches out to students blindsided by sudden closure of Brightwood