Michael Cohen Sentenced to 3 Years in Prison for Various Crimes

Nearly 35,000 Former Corinthian College Students in California Will See Debt Relief Years After Campus’ Sudden Closure

Santa Ana-based Corinthian Colleges has been in serious financial distress since the U.S. Department of Education temporarily suspended its access to federal student aid in June 2014. (Credit: Don Bartletti / Los Angeles Times)

Santa Ana-based Corinthian Colleges has been in serious financial distress since the U.S. Department of Education temporarily suspended its access to federal student aid in June 2014. (Credit: Don Bartletti / Los Angeles Times)

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

Forgiveness of the remaining balances on the 34,971 accounts owned by Balboa Student Loan Trust will total $67 million in debt relief, state Atty. Gen. Xavier Becerra said Thursday.

“All too often, unfortunately, there are unscrupulous players who engage in unscrupulous practices in some of our postsecondary education institutes, and there are lenders in cahoots that do the same thing,” he said at a news conference.

The settlement comes after a yearlong investigation by the attorney general’s office into Balboa’s debt-collection practices.

Read the full story on LATimes.com.