Heald students in Hawaii may be due debt relief
The U.S. Department of Education on Monday announced a series of new debt relief measures that could assist tens of thousands of students affected by the collapse of Corinthian Colleges Inc., including those who attended Heald College in Honolulu. The provisions might allow thousands more students to wipe out their student debt.
Until now only 16,000 students — those who attended schools that suddenly closed in April — have been eligible for debt forgiveness. The new policy allows other students to seek debt forgiveness if they believe they were victims of fraudulent marketing and recruiting practices, regardless of when their school closed.
The department also extended loan forgiveness to students whose schools eventually closed, as long as they withdrew after June 20, 2014 — when the Education Department first restricted Corinthian’s access to federal aid. Students can find more information at studentaid.gov/Corinthian.
The collapse of Santa Ana, Calif.-based Corinthian came after years of federal and state investigations into alleged falsification of student job placement rates and misleading marketing campaigns. The Education Department called Corinthian’s closure in April "the largest college shutdown in American history."
Since 2010 nearly 350,000 student borrowers took out about $3.5 billion in federal student loans. Students must submit paperwork to be eligible for loan forgiveness.
Education Department officials found that the vast majority of students who attended Corinthian’s Heald College system between 2010 and 2015 will be eligible for federal loan discharges.
Don't miss out on what's happening!
Stay in touch with top news, as it happens, conveniently in your email inbox. It's FREE!