California AG: 1,000 former Fresno Heald students receive debt relief
Heald College’s Fresno campus, part of the Corinthian College for-profit chain, closed in 2015 after review by the Federal Department of Education.
published on June 14, 2018 – 12:55 pm
Written by Gabriel Dillard
More than 1,000 former Heald College students in the Fresno area will receive student loan debt relief after the school closed three years ago.
California Attorney General Xavier Becerra made the announcement Thursday as part of an announced settlement with the Balboa Student Loan Trust, which will cancel approximately $ 67 million in debt to former Corinthian college students.
The for-profit college chain closed its 28 campuses in 2015, including the Heald College campus in Fresno.
The attorney general opened an investigation against Balboa last year after learning that the company may have been guilty of debt collection misconduct on some of its Corinthian loans.
The federal education ministry cracked down on Corinthian in 2014, restricting access to federal student grants after fears the chain was falsifying its graduate placement rates, Associated Press reported.
The Department of Education announced in December that it would be granting some former students partial federal student loan waivers.
“In the coming weeks, thousands of betrayed Corinthian students will receive a letter in the mail informing them that their loans have been completely canceled. We hope this brings some degree of closure and peace of mind, ”said Attorney General Becerra. “While this agreement is an important step forward, there is still a long way to go. Now is the time for US Secretary of Education Betsy DeVos to get her federal exoneration owed to defrauded Corinthian students on their federal student loans. “
As part of the settlement, Balboa will stop collecting 100 percent of the remaining balances on each of the 34,971 private student loans on its books. It will also reimburse payments worth $ 500,000 made since August 1, 2017.