The Nevada Attorney General's Office announced that in light of Brightwood College’s sudden closure, Nevadans who attended this college in Las Vegas have several options available to them related to their federal student loans.
Last week, the Accrediting Council for Independent Colleges and Schools suspended Education Corporation of America’s accreditation. ECA is the parent company of Brightwood College, which operated a private, for-profit nursing school in Las Vegas.
Students affected by the ECA closure should be aware of all of their options regarding their federal student loans. Students with private student loans should contact their servicer for more information, as their options may be different.
Closed School Loan Discharge:
Students who currently attend or recently withdrew from Brightwood College may be eligible to receive a closed school discharge of the outstanding federal student loans they borrowed to attend the school. Students who wish to receive the closed school discharge must apply through the U.S. Department of Education. Students may receive this discharge only if they do not transfer credits to another school. The Department of Education has more information on closed school loan discharges on its website here.
Transfer of Credits:
Students who attended Brightwood College may be eligible to transfer their credits to a comparable program of study. Students interested in this option are advised to inquire whether Brightwood College has a “teach-out” or transfer agreement in place with a local school for completion of the program. Students may also contact local schools to inquire about transferability.
If a student chooses to receive a closed school loan discharge, the student cannot pursue a teach-out or transfer, and vice versa. Students should contact their federal loan servicer to discuss their options in greater detail. For more information on available options and to access frequently asked questions, visit the U.S. Department of Education, NextStepsEd, and Student Loan Borrower Assistance.
Brightwood College and ECA sent a notice letter to students stating student will receive credit for all courses completed by Dec. 7, the day the school closed.