35,000 former Corinthian College students with private student loans will see debt relief

Wednesday, June 27, 2018

Nearly 35,000 former Corinthian College students in California will have the remainder of their private student loan balances forgiven, and some may receive payment refunds, after an investigation by the state attorney general’s office determined that a loan company engaged in illegal debt collection practices.

The former students attended the career training colleges Everest, Heald and WyoTech, which the bankrupt Corinthian sold in 2015.

Under the settlement, Balboa Student Loan Trust, which holds the loans of 34,971 former Corinthian students across California, will stop all debt collections from the former students and forgive their remaining balances, totaling $67 million. Balboa will also refund $500,000 in loan payments the students have made since Aug. 1, 2017.

Balboa will refund an additional $84,000 to students who received “problematic” notices and made payments before August 2017. These notices threatened legal action if the borrower’s loan balance remained unpaid. Balboa had previously agreed to debt collection limitations that barred the company from threatening legal action.

Impacted students will receive a letter in the mail from Balboa informing them that their loans have been forgiven. Borrowers will receive checks via mail for their refunds, which could also include the additional payment refund for “problematic” notices.

For more information, visit the California attorney general’s website or call 916-210-6276.