BOSTON — A Florida debt buyer that purchased student loans from an online study guide and education provider has agreed to forgive the debt as part of a settlement with the state of Massachusetts that resolves allegations the education provider offered ineffective and expensive study materials to students.
According to Massachusetts Attorney General Maura Healey, MSW Capital LLC purchased some loan debt from The College Network, which allegedly charged large fees for insufficient educational materials. The College Network allegedy misled students by selling ineffective education materials to students and promising the materials would help them pass equivalency exams for nursing and various other fields, the Attorney General's Office said.
“The College Network repeatedly misled Massachusetts students and provided inadequate education services at a high cost,” said Healey in a statement. “With this settlement, more students are receiving the relief they need.”
MSW Capital will forgive about $39,000 in student loan debt that came from The College Network students and will refund more than $1,000 to students in Massachusetts, according to Healey's office. In addition, MSW Capital will remove the "negative loan information" from the students' credit reports, the office said.