The Hawaii attorney general announced today that the parent company of Argosy University has agreed to forgive loans taken out by 181 former Hawaii students and reform its recruiting and enrollment practices as part of a national settlement.

About $183,865 in loans will be forgiven for Hawaii students who were enrolled for short periods of time between Jan. 1, 2006, and Dec. 31, 2014, according to Attorney General Doug Chin.

The loan forgiveness and reforms are part of an agreement between for-profit company Education Management Corp., also known as EDMC, of Pittsburgh, and a group of state attorneys general. The consent judgment was filed in state Circuit Court.

“Our investigation provided a clear picture of how EDMC lured prospective students into its programs and how many students left the program with unfulfilled promises and tremendous debt,” Chin said in a news release.

“This civil enforcement action holds EDMC accountable for what we allege were unfair and deceptive recruitment and enrollment practices.” he said. “This agreement will provide relief for them through loan forgiveness and ensure that EDMC will make substantial changes to its business practices for future students.”

Nationwide, the agreement will forgive $102.8 million in outstanding debt for more than 80,000 former students. The average amount is expected to be $1,370 per person.

In the agreement, EDMC does not admit to the wrongdoing alleged by the attorneys general. The company operates 110 schools in the United States and Canada, including Argosy University, which has a downtown Honolulu campus; The Art Institute; Brown Mackie College; and South University.

In a statement on its website, the company said it had worked with attorneys general to reach agreements that ended investigations into its recruiting practices. “EDMC worked to develop new, more transparent standards, which the company hopes will serve as a model for higher education,” it said.

The agreement prohibits EMDC from misleading students about accreditation, graduation rates, financial aid and placement rates. It requires a single-page disclosure projecting the student’s anticipated total cost, median debt for graduates, the default rate and job placement rates.

It also gives students a longer period to withdraw from school without financial obligation.

A new interactive online financial disclosure tool will give each student a personalized financial report, including projected financial commitment, living expenses and potential future earnings. It is being developed by the U.S. Consumer Financial Protection Bureau and state attorneys general and will soon be launched as the Electronic Financial Impact Platform.

The EDMC loan forgiveness applies to students who withdrew within 45 days of the first day of their first term. Their last day of attendance must have been between Jan. 1, 2006, and Dec. 31, 2014.