SAN FRANCISCO (Legal Newsline) — California Attorney General Xavier Becerra announced June 14 that Balboa Student Loan Trust will provide $67 million in debt forgiveness to 34,971 residents of the state who had been allegedly victimized by Corinthian Colleges.
Balboa will immediately cease all debt collections for Corinthian students and forgive 100 percent of their remaining balances. Although this was an important step in the fight against Corinthian, Becerra said, additional steps rely on support from the U.S. Department of Education.
“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,” Becerra said in a statement.
“While this settlement is an important step forward, there’s still a long way to go. It’s 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.”