Director Richard Cordray’s Consumer Financial Protection Bureau says Bridgepoint Education misled students about its private loan program. Publicly traded for-profit colleges have been butting heads with state and federal regulators over allegations of steering students into high-cost loans, misleading consumers about their programs and aggressive marketing tactics. The company ran the private loan program from 2009 until 2013, lending more than $24 million and collecting roughly $5 million in principal and interest from these loans. The company must also contact the credit bureaus to remove any adverse information related to the private loan program off borrowers’ credit reports. When students could not pay up, ITT allegedly forced them to take out high-interest loans to repay the first ones, the CFPB said.

Source: Washington Post September 12, 2016 19:33 UTC