A Nevada-based debt purchaser will forgive about $298,000 in loan debt payable from Massachusetts pupils, within a settlement reached by Massachusetts Attorney General Maura Healey’s office.
The debts, funded by Troy Capital LLC, were accrued in connection with buys by a for-profit firm that offered online research guides and education solutions, officials announced Thursday.
Troy Capital will release roughly $298,000 at loan debt Massachusetts pupils made in connection with buys by a for-profit firm that provided online study guides and schooling solutions, officials announced Thursday.
Healey stated Troy Capital will release the loans pupils used to fund “expensive and ineffective online study materials and educational services” in The College Network, Inc., which supplied the services.
Troy Capital will also offer roughly $70,600 into the country to present extra refunds to particular debtors, Healey’s office said in a statement, adding Troy Capital will ask the elimination of any adverse loan data from the pupils’ credit reports.
Between January 2010 and May 2016, The College Network tricked students, signaling its instructional materials would help pupils pass equivalency examinations and get college credit in areas like nursing and health management.
“The company’s salespeople often arranged for students to obtain financing from certain credit unions. In some instances, the credit unions sold the loans to other entities,” the attorney general’s office stated. “Troy Capital, a debt buyer, purchased a portfolio of these loans.”
Healey’s office will get people qualified for relief under the settlement.
“Borrowers who are misled by for-profit education companies should not be buried in debt because of high cost, low quality education services,” Healey explained. “With this settlement, Massachusetts students who were harmed will receive the relief they need.”
The attorney general’s office previously reached settlements with credit unions We Florida Financial and Southeast Financial Credit Union, which extended credit to The College Network’s customers, in addition to MSW Capital, yet another debt purchaser that bought a portfolio of The College Network Loans.
As of Thursday, Healey’s office has procured over $1.7 million in loan aid for Massachusetts customers of their College Network. The College Network became insolvent and has been administratively dissolved in 2017, ” the announcement said.
Anyone with questions regarding the compensation or complaints regarding The College Network is requested to contact the Attorney General’s Student loan Support Unit in 1-888-830-6277 or file a complaint at www.mass.gov/ago/studentloans.