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posted by martyb on Saturday April 18 2015, @06:48PM   Printer-friendly
from the ongoing-saga dept.

The US Department of Education reports

The U.S. Department of Education took additional steps [April 14] to protect students and taxpayers and crack down on abuses within the for-profit sector by continuing its enforcement actions against Corinthian Colleges Inc. After a comprehensive review, the U.S. Department of Education has confirmed cases of misrepresentation of job placement rates to current and prospective students in Corinthian's Heald College system. The Department found 947 misstated placement rates and informed the company it is being fined about $30 million.

Specifically, the Department has determined that Heald College's inaccurate or incomplete disclosures were misleading to students; that they overstated the employment prospects of graduates of Heald's programs; and that current and prospective students of Heald could have relied upon that information as they were choosing whether to attend the school. Heald College provided the Department and its accreditors this inaccurate information as well.

The Department has also notified Corinthian it intends to deny Corinthian's pending applications to continue to participate in the Title IV federal student aid programs at its Heald Salinas and Stockton locations. Corinthian has 14 days to respond to the Department's notice, after which the Department will issue its final decision. Moreover, the Department has determined that Heald College is no longer allowed to enroll students and must prepare to help its current students either complete their education or continue it elsewhere.

The "Corinthian 15" debt strikers of February became the Corinthian 100 in late March with students refusing to pay back loans made under fraudulent conditions. Nine states' attorneys general agree that the bad loans should be forgiven.

Cable News Network notes

"Corinthian took advantage of students who were trying to build a better life for themselves and their families" said Massachusetts Attorney General Maura Healey.

[...]Tuition and fees for some of its programs cost more than five times those at other public colleges, according to the [Consumer Financial Protection Bureau]. A bachelor's degree cost up to $75,000 and an associate's was as much as $43,000.

Corinthian was so expensive that many students needed to take out both federal loans and private loans to cover the cost. The college offered its own private loans, which came with interest rates sometimes twice as high as federal loans.

Related:
Federal Crackdown On For-Profit Colleges Claims Its First Victory
Update: Corinthian Colleges Will Sell Half its Campuses to Nonprofit Loan Servicer

 
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  • (Score: 0) by Anonymous Coward on Saturday April 18 2015, @07:56PM

    by Anonymous Coward on Saturday April 18 2015, @07:56PM (#172559)

    No, it's different. In order to consume an education, one needs to already have some intellectual abilities. These abilities will exist prior to receiving any education. The education just enhances what's already there. The basic level of intellectual ability needed prior to pursuing an education should render one able to determine if an opportunity is obviously bad. If these people lack this basic raw intellect, then any education, regardless of how or where they receive it, will be a waste.

  • (Score: 2, Insightful) by Anonymous Coward on Saturday April 18 2015, @08:36PM

    by Anonymous Coward on Saturday April 18 2015, @08:36PM (#172574)

    In order to consume an education

    You don't "consume" an education anymore than you "consume" data. This is some terrifying corporate propaganda right here.

    • (Score: 1, Touché) by Anonymous Coward on Saturday April 18 2015, @08:48PM

      by Anonymous Coward on Saturday April 18 2015, @08:48PM (#172579)

      If you've learned something from this thread then you owe us $14,329.87. We'll email your certificate to the same address registered to your PayPal account. Don't forget to apply for our "Thread Master's Program" where we offer mod points and a starting karma position of 10 points (12 points if you get your loan through our DIY Debt program course offering). Learn from your mistakes, at Corinthian!

  • (Score: 3, Insightful) by hemocyanin on Saturday April 18 2015, @10:13PM

    by hemocyanin (186) on Saturday April 18 2015, @10:13PM (#172602) Journal

    Smart people do stupid shit all the time as soon as they get out of the area in which they have knowledge or skill. This why people look for accreditation when choosing a school, or board certification when choosing a neurologist, or any such certification in any area, because no matter how brilliant a person is, that person can't know everything in the world. We use these certifications as a guideline and rationally so, otherwise we could never do anything at all because our time would be so wholly wasted. Corinthian committed fraud in obtaining accreditation and so it is Corinthian which is the bad actor here. All of those loans should be taken out of Corinthian's hide because it was the fraudster, and but for that fraud, those loans wouldn't have been made.

    Anyway, feels like a Corinthian executive wants to use SN to bitch about being busted. Tough shit buddy.