Millions in student loans forgiven for former Corinthian College students

SAN FRANCISCO -- There has been a huge victory for thousands of California students allegedly defrauded by the now-defunct Corinthian Colleges. California's attorney general is forgiving millions in student loans.

"Today is a good day for justice for those who have been through so much," said Melissa Dougherty. She says her career in medical assisting was derailed after Heald College and its parent company, Corinthian Colleges, suddenly closed down dozens of campuses in 2015.

"What Corinthian did was uncalled for and despicable," she added.

Thirty-five thousand students were forced to repay their student loans even though there was no school.

"In 2015, a federal court ruled that Corinthian broke the law and borrowers continued to be harassed to repay them," said Debbie Cochrane of the Institute for College Access.

"Corinthian was a predatory institution that's shut down because of its fraudulent practices," said California Attorney General Xavier Becerra.

Becerra announced a settlement with Balboa Student Loan Trust providing $67 million in debt forgiveness.

"Balboa will immediately stop collection action and forgive that loan," Bacerra added.

Dougherty moved to Sacramento to continue her education at a different school. She just graduated and recently got a job at a medical practice. "What the AG did was amazing. It allows students to move ahead with their lives."

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