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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: 3, Insightful) by Joe Desertrat on Wednesday April 29 2015, @07:12PM

    by Joe Desertrat (2454) on Wednesday April 29 2015, @07:12PM (#176787)

    All of the major for-profit schools have been caught using this business model.
    And it's completely unnecessary, because most would get a much better education for less money going through their state's public educational institutions (public high school / GED, community college, state university).

    You mistake the purpose of the system. Public education money is one of the largest plums left on the tree. The point is to privatize education so that money goes to private accounts rather then getting more or less recycled back into the system. The students? Who cares what happens to them? They are just another resource to be exploited.

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