Education Department puts CEHE on the hook for $23M in closed-school loan discharges

Higher Ed Dive 

Natalie Schwartz

December 18, 2023

The request is the latest development in an ongoing legal battle between the agency and the Center for Excellence in Higher Education.

Dive Brief:

• The U.S. Department of Education is demanding $23 million from the Center for Excellence in Higher Education, a former college operator whose institutions closed in 2021.

• The money is meant to cover closed-school loan discharges for the organization’s former students. The Education Department notified CEHE how much it owed in a Dec. 8 letter and gave the organization 45 days to either pay or appeal the decision, according to recent court documents.

• The request is the latest development in the legal battle between CEHE and the department. The college operator has accused the Education Department of forcing it to close and sued the agency last year seeking $500 million in damages.

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