UPDATE | Yesterday, Governor Jerry Brown signed State Senator Janet Nguyen’s legislation to ease student debt, created in the wake of the collapse of Corinthian Colleges, Nguyen's office announced.
Nguyen, who represents parts of Long Beach, jointly authored the legislation with State Senator Bob Huff to offset the financial burden of students who had taken out loans to pay for school at the Corinthian College campuses. Their move came shortly after their the school systems' closure, in May of this year. Corinthian Colleges had a campus in Long Beach.
“Today’s signature by Governor Brown provides a remedy to the more than 13,000 Corinthian Colleges students throughout California who were affected by the unexpected closure of this school,” said Nguyen in a statement. “These students now possess a resource that will help put the past behind them while creating a clean slate from which they can achieve higher education.”
Various advocates testified in support of the bill, Senate Bill 150, including many veteran groups like the American Legion, AMVETS, California Association of County Veterans Service Officers, Veterans of Foreign Wars and the Vietnam Veterans of America, as the school closures affected low-income vets.
“Today is a proud moment for the State of California. By signing SB 150 into law today, Governor Brown and the California Legislature have provided much needed support to a large group of Californian students that were doing the right thing and making strides to better their lives, but were halted by the sudden closure of their schools,” said Nguyen in a statement.
PREVIOUSLY: Nguyen's Student Debt Bill Awaits Governor Brown's Signature
09/16/2015 at 11:48AM | Last week, State Senator Janet Nguyen’s legislation to ease student debt in the wake of the collapse of Corinthian Colleges cleared the State Assembly with a unanimous vote. It currently awaits the governor’s signature for its final passage.
Senate Bill 150 was co-authored by Nguyen, who represents parts of Long Beach, with Senator Bob Huff after the closure of Corinthian Colleges, which had a campus in Long Beach, in May of this year.
“Today’s vote by the California State Legislature is a ray of hope for the more than 13,000 Corinthian College students throughout California,” said Senator Janet Nguyen in a statement on Friday, upon the bill’s passage. “In the midst of everything they have gone through in the past few months, these students are now one step closer to closing this unfortunate chapter in their lives and I am proud to be spearheading the effort to assist them.”
Governor Jerry Brown has until October 11 to sign the bill into law.
“As SB 150 heads to the Governor’s desk, I have every faith that Governor Brown will join us in echoing the sentiment of the California Legislature by supporting a group of students who were seeking to improve their lives and were victimized by this vocational institution,” said Nguyen in a statement.
PREVIOUSLY: Senator Nguyen’s Student Debt Forgiveness Bill Approved by Senate Amid Collapse of Corinthian Colleges, Moves to Assembly
9/8/15 at 2:20PM | State Senator Janet Nguyen’s legislation, aimed to ease the burden of student debt in the wake of Corinthian Colleges collapsing, has been approved by the State Senate and will next be considered in the State Assembly, Nguyen’s office announced last week.
Nguyen authored the bill with Senator Bob Huff after the closure of Corinthian Colleges, which had a campus in Long Beach, in May of this year. The bill would eliminate the tax liability of students whose loans were discharged through a variety of federal, state and private programs. Current law dictates students are liable for taxes if they choose to forgo their college credits and have their loans forgiven.
“I am pleased that the California Legislature is now one step closer to assisting more than 13,000 California students who were affected by the unexpected closure of Corinthian Colleges,” said Nguyen in a statement. “These students made a personal and financial investment to improve their lives and now find themselves unable to finalize their studies.”
PREVIOUSLY: Collapse of Corinthian Colleges Spurs State Sen. Janet Nguyen to Co-Sponsor Student Debt Forgiveness Bill
05/15/15 at 5:45PM | State Senator Janet Nguyen is co-sponsoring a bill that would offer students federal loan forgiveness without creating a tax liability, spurred by concerns about the future of students who attended the many campuses of the now-defunct Corinthian Colleges.
Nguyen, a Republican who represents parts of Santa Ana, Gardon Grove and Long Beach, said the fate of students who had enrolled at Corinthian Colleges, which had a campus in Long Beach, weighed heavily on her mind.
“It is unimaginable that these students put their trust and money in Corinthian Colleges and now will have to make the tough choice to forgo their credits after years of work,” Nguyen said in a statement issued Friday. “They should not be burdened with a tax debt as well.”
According to the release, students of shutdown colleges must currently choose between relinquishing their college credit and having their federal student loan debt forgiven, or retaining their credits and facing accountability for the full amount of their student loans.
Nguyen’s Senate Bill 150 would allow students to retain college credit and be forgiven for their student debt, the release said.
Founded in 1995, Corinthian Colleges had operated a branch of its subsidiary, WyoTech College, in Long Beach before its recent demise. The closure of Corinthian Colleges' 107 campuses came as a result of federal and state investigations into fraudulent marketing and unfair financial aid practices.
“My hope is that SB 150 will help students whose educational career is in limbo through no fault of their own to continue their education without being penalized financially,” said Nguyen in a statement.