Florida's Attorney General, Pam Bondi, has announced a tentative multimillion dollar settlement with Aequitas, a now defunct investment firm that engaged in a scheme to fund private student loans to Corinthian Colleges students.
According to Bondi's office, the settlement resolves allegations that Aequitas, through its involvement in a student loan program, engaged in deceptive and unfair practices in violation of state and federal law.
As part of the settlement, Bondi's office says Aequitas will provide more than $18 million in debt relief to more than 4,900 Floridians who obtained private student loans to attend Corinthian Colleges.
Bondi's office says all affected students will get at least 50 percent debt relief, with the majority getting 100 percent relief.
According to information provided by Bondi's office, Aequitas entered into a complex financial arrangement with the now bankrupt Corinthian Colleges to fund expensive student loans through a program called Genesis Private Student Loan Program.
Aequitas allegedly funded the loans to give the false appearance that Corinthian was financially sound while leaving students with substantial debt that many could not repay.
Corinthian shut down in 2015, but Florida students were left owing more than $20 million in expensive loans, records show.
Florida is joined in the proposed settlement by 12 other state attorneys general and the Consumer Financial Protection Bureau.
In total, the agreement provides $192 million for more than 46,000 former Corinthian students across the nation.