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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
(Score: 2, Insightful) by anubi on Sunday April 19 2015, @06:38AM
Interesting links...
I wonder if the "payday loan" companies did not exist, then if the landlord hikes the rent, he has to make evictions because the people can't go into debt to pay the hike. Is not even the availability of selling oneself into debt the cause of us doing it, simply because others can economically force the issue?
I keep seeing prices spiraling higher and higher, despite mass outsourcing of employment. For now, it seems like people are willingly going into debt so as to meet the seller's price. I, for one, would love to see this end-around-carry by going into debt stop, and when sellers hike price, sales stop. The buyers are the ones who set the price anyway, and if they are kept from bidding the prices up, this will stop. In addition, it will put pressure on lawmakers to not exact tax from the lowest segments of the economy, as those are the ones actually spending 100% of what they get to local businessmen. Every dollar taken from a minimum wage worker is a dollar taken from the till of a merchant. Once the merchants begin lobbying Congress, we will see Congress having to do some serious reform.
We can only live on debt for so long, then there is no longer money to pay for interest, and the thing folds back in on itself. Its a really nasty little illusion of wealth.
"Prove all things; hold fast that which is good." [KJV: I Thessalonians 5:21]