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posted by martyb on Wednesday April 29 2015, @09:37AM   Printer-friendly
from the destroyed-itself-and-others dept.

Common Dreams reports

Corinthian Colleges, the for-profit education system that has come under fire for its predatory student loan schemes, said [April 26] it would shut down all of its 28 remaining campuses, roughly two weeks after the U.S. Department of Education announced it would fine the institution $30 million for misrepresentation regarding job placement rates.

[...]At its peak, the California-based company ran more than 120 colleges across the country with more than 110,000 students.

This final shutdown will displace about 16,000 students.

[...]Students whose campuses are closing may be eligible for closed-school loan discharges, [said Education Undersecretary Ted Mitchell]. "We will do everything we can to ensure that Corinthian makes good on its obligations to students and taxpayers to the extent possible. In addition, we encourage Corinthian students to pursue debt relief with their state".

However, some say that the Department of Education has yet to come through on those promises. As the National Consumer Law Center (NCLC) pointed out in February, the government gave funds to keep Corinthian afloat before it filed for bankruptcy, but gave no such help to the tens of thousands of students who were left without a degree and saddled with debt.

"There's widespread evidence they've engaged in years and years of deceiving students and taxpayers," NCLC attorney Robyn Smith told the Boston Globe at the time. "We're not seeing any relief for the students who've suffered the consequences."

Previous coverage on SoylentNews:
Update: Corinthian Colleges Fined $30M for Fraud

 
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  • (Score: 5, Insightful) by Hairyfeet on Wednesday April 29 2015, @11:28AM

    by Hairyfeet (75) <reversethis-{moc ... {8691tsaebssab}> on Wednesday April 29 2015, @11:28AM (#176549) Journal

    That doesn't help all those that were duped by this (and others) and were left with nothing but a worthless piece of paper and tons of debt. These schools are the educational equivalent of payday loan businesses, sharks that feed upon the poor with blessings from the government and just as it was the government that allowed the payday loan leeches to do business (by removing usury laws) so too is it the responsibility of the government to wipe their debts from the books so these people can actually move on with their lives.

    This topic is dear to my heart as we had a suicide not a couple months back in the apts across the street, really nice kid, couldn't have been more than 24. Talking to one of my cop friends it turned out the kid has been duped by one of these colleges and they found the table next to where he hung himself covered with debt notices, something like 40K worth. He said " we probably get 3 or 4 a year killing themselves, not counting the ones that walk out into the river that get listed as accidental" so this shit really needs to end.

    --
    ACs are never seen so don't bother. Always ready to show SJWs for the racists they are.
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  • (Score: 4, Interesting) by VLM on Wednesday April 29 2015, @12:06PM

    by VLM (445) Subscriber Badge on Wednesday April 29 2015, @12:06PM (#176560)

    Greed is the problem. I earned an associates degree in electronics which was utterly worthless in the job market but I only paid $1200/semester or about $4800 total.

    (Oh and 56 of the 64 credits transferred to a real uni, this was an accredited local state 2-yr school with a transfer agreement with the not so local 4-yr uni, not a worthless for profit school. Eighty bucks per credit hour, I'll take that please...)

    Anyway the point is I got a worthless piece of paper too, but it only cost like 600 minimum wage working hours, not basically a lifetime of debt slavery. Thats only six hours per week of minimum wage income for the two years I was in school. Corinthian would still be in business if they were screwing over their victims to the tune of $5K or so instead of trying and failing to squeeze $50K out of each of them. Idiots.

    • (Score: 2) by Hairyfeet on Thursday April 30 2015, @06:28AM

      by Hairyfeet (75) <reversethis-{moc ... {8691tsaebssab}> on Thursday April 30 2015, @06:28AM (#176964) Journal

      Well talking to a few kids that have gotten burnt (as well as my cop friend) the average one here gets burned for $37-$47k, in a state where the average person without a college degree makes less than 25K. Needless to say these kids will NEVER be out of debt and the job placement rate is a bad joke, one I talked to with an associates degree from one of these mills said his "job placement" involved 3 "opportunities" that he found out later were just pulled at random from the local paper, the last one of which was a pyramid scam selling insurance!

      So I'm all for these places being wiped out, now we need the government to wipe the debts before more kids are found swinging next to debt notices.

      --
      ACs are never seen so don't bother. Always ready to show SJWs for the racists they are.
  • (Score: 2, Insightful) by Anonymous Coward on Wednesday April 29 2015, @03:28PM

    by Anonymous Coward on Wednesday April 29 2015, @03:28PM (#176649)

    When your entire economic system is based on exploitation, you lose all right to be surprised or to act concerned when finding out that people constantly get exploited.