The Attorney General of Massachusetts has reached a settlement with a debt buyer that will see it forgive about $300,000 in unpaid student loans and pay the Commonwealth $70,000 to be used to provide refunds to individuals who were misled by an online education company.
Troy Capital purchased a portfolio of loans from The College Network, Inc., a company that provided online study guides and education services to individuals. In the Assurance of Discontinuance filed in a state court, the Attorney General said that Troy Capital “provided prompt assistance and cooperation” and that the agreement was entered into voluntarily.
The College Network is accused of misleading individuals into thinking that the materials they were purchasing would help them pass equivalency exams and earn college credits and convinced the individuals to finance the purchases of those materials. Troy did nothing other than purchase a portfolio of those loans.
“Borrowers who are misled by for-profit education companies should not be buried in debt because of high cost, low quality education services,” said Maura Healey, the Attorney General of Massachusetts. “With this settlement, Massachusetts students who were harmed will receive the relief they need.”
Healey announced that her office has secured nearly $2 million in relief for residents of Massachusetts from those who were taken advantage of by The College Network. Similar settlements have been reached with two credit unions that helped finance the purchase of the materials and a debt buyer that also purchased a portfolio of loans originated by The College Network. The College Network was dissolved in 2017. The other debt buyer — MSW Capital — discharged $39,000 in loans and provided $1,400 in refunds.