Student Loan Related

California Wins Forgiveness of Corinthian Colleges’ Private Student Loan Debt

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Written by Steve Rhode

While the Department of Education seems to be marching backward to assist students defrauded by Corinthian Colleges schools the State of California has won forgiveness on private student loan debt for 35,000 students held by Balboa Student Loan Trust.

“Thousands of defrauded Corinthian students will receive a letter in the mail informing them that their loans have been fully forgiven,” California Attorney General Xavier Becerra said.

Due to the settlement, Balboa will:

  • Immediately halt all debt collections and forgive 100 percent of the remaining balances on each of the 34,971 private student loans that it currently holds, totaling $67 million in debt relief;
  • Refund all payments made by Californians since August 1, 2017, totaling more than $500,000;
  • Refund additional payments made prior to August 1, 2017, by Californians who received problematic debt-collection notices, totaling approximately $84,000;
  • Be prohibited from engaging in future debt-collection misconduct; and
  • Delete all negative credit reporting associated with these loans for students in California and around the country.

Becerra said, “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. At the California Department of Justice, we will continue to hold accountable those who would prey on America’s college students, their parents and their American Dreams.”

At least someone is now that the CFPB has been neutered as well.

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About the author

Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

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