La' James International College to forgive $2.1 million in loan - KWWL - Eastern Iowa Breaking News, Weather, Closings

La' James International College to forgive $2.1 million in loan debt through settlement

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DES MOINES (KWWL) -

La' James International College will forgive $2.1 million in student loan debt, while the company and two principals will also pay the state $550,000 through an Iowa Department of Justice settlement announced today.

The consent judgment settlement resolves a consumer fraud lawsuit filed against the Ford Dodge-based cosmetology school in Polk County in 2014. The lawsuit accused La' James of deceptive and unfair practices in marketing, instruction and enrollment.

The settlement, which was made with Attorney General Tom Miller, says La' James will halt attempts to collect $2.16 million in debt and interest from former students who owe money to the cosmetology school. Affected students must be notified by the school within 90 days of the settlement, and credit reporting agencies will also be made aware.

Principals Cynthia and Travis Becher will each pay the state $25,000 through the settlement, with the school also paying out $500,000. The payments will mostly go towards repaying current and former students.

The school also promises transparency in recruiting prospective students, and improving some training practices and policies for current students.

La’ James International College has locations in Cedar Falls, Cedar Rapids, Davenport, Fort Dodge, Iowa City and Johnston. An unaffiliated La' James College in Mason City is not connected to the lawsuit or settlement. The school and principals admit no wrongdoing through the settlement.

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