Lawmakers: For-Profit Colleges Should Reimburse Heald Students

In response to this week's Heald College closing, California lawmakers have introduced a bill that would make Heald and Corinthian online students eligible for the California Student Tuition Recovery Fund.

The California Department of Consumer Affairs says Heald students could be reimbursed for some credits when they enroll at a new school. The department's Russ Heimerich says the payment would be prorated.

"It would depend on if the school accepted all of the credits. Generally, private, post-secondary schools don't accept all the credits from another private, post-secondary school -if they accept them at all," says Heimerich.

The bill would require for-profit schools to immediately increase their payments into the recovery fund and would double the fund to $50 million.

The state has not accepted any recent payments into the fund because it has reached its statutory maximum of $25 million.

If 13,000 California students affected by the school closure receive the average payout, the state would have to pay $78 million. 

Heald students would also regain lost Cal Grant eligibility and would not have to pay any community college fees if the bill becomes law.

The California Community Colleges Chancellor's Office says its students are already exempt from the $46-per-credit fee if their incomes are below a certain level.

Several state and local agencies have scheduled a Monday webinar for students and there are two web pages dedicated to students of Heald, Wyotech and Everest colleges -all closed by  Corinthian College this week.