The Fresno campus of Heald College, part of the Corinthian College for-profit chain, closed in 2015 amid scrutiny from the federal Education Department.
Written by Gabriel Dillard
More than 1,000 former Heald College students in the Fresno area will receive debt relief from student loans after the school closed three years ago.
California Attorney General Xavier Becerra made the announcement Thursday as part of an announced settlement with Balboa Student Loan Trust that will forgive about $67 million in debt for former students of Corinthian Colleges.
The for-profit college chain closed its 28 campuses in 2015, including the Heald College campus in Fresno.
The Attorney General’s office opened an investigation into Balboa last year after learning that the company may have engaged in debt-collection misconduct on some of its Corinthian loans.
The federal Education Department cracked down on Corinthian in 2014, restricting access to federal student aid after concerns that the chain was falsifying the job placement rates of its graduates, reported the Associated Press.
The Education Department announced in December it would start granting some former students partial federal student loan forgiveness.
“In the coming weeks, thousands of defrauded Corinthian students will receive a letter in the mail informing them that their loans have been fully forgiven. We hope this delivers some measure of closure and peace of mind,” said Attorney General Becerra. “While this settlement is an important step forward, there’s still a long way to go. It’s now time for U.S. Secretary of Education Betsy DeVos to follow through on her end with the federal relief owed to defrauded Corinthian students on their federal student loans.”
As part of the settlement, Balboa will halt collections on 100 percent of remaining balances on each of the 34,971 private student loans on its books. It will also refund $500,000 worth of payments made since Aug. 1, 2017.