The U.S. Department of Education says Mid-Continent University owes it money, but the former college will not have to pay it all back after a bankruptcy hearing Thursday.

The money the Department of Education loaned the school was from the Federal Student Financial Assistance program. As part of that program, Mid-Continent was supposed to submit a close-out audit report 90 days after closing. It still has not submitted that audit.

The Department of Education says it came to an agreement earlier this month that, in exchange for submitting a late close-out audit report, Mid-Continent should pay back some of the loaned money. The total is around $27 million.

An attorney for Mid-Continent said its now three-person cannot keep up with the demands of conducting the audit and should be granted some forgiveness. The judge responded by saying everyone knows it’s "monopoly money" now, meaning the Department of Education won’t get back all $27 million.

The judge gave the Department of Education the responsibility of determining what loans they could and could not forgive. So, now we wait for a response from the Department of Education.

Mid-Continent is expected to have another hearing in October.