Senators Amy Klobuchar and Al Franken are urging the Department of Education to protect hundreds of students affected by the unexpected closure of Regency schools.
The Twin Cities-based beauty institute closed all of its 79 campuses this week. A statement on the company's website says that after 50 years, the it doesn't have the cash to continue to run the cosmetology school business.
In a letter, Klobuchar and Franken ask the Department of Education to provide students with relief under closed school discharge.
"The Department of Education has the legal authority to discharge federal student loans for current students of Regency Beauty Institute who choose not to transfer their credits to another institution and students who have withdrawn from the school in the last 120 days. We ask that the Department act immediately by identifying and reaching out to students who are eligible for closed school discharge. Since students who transfer academic credits to a comparable educational program at another school are not eligible for loan relief, we request that the Department clearly state the criteria for closed school discharge during the outreach process."
About 35 aspiring cosmetologists were enrolled in the Duluth location.