Corinthian Colleges sued today by the Feds: "jaw-dropping" charges

Discussion in 'General Distance Learning Discussions' started by John Bear, Sep 16, 2014.

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  1. John Bear

    John Bear Senior Member

    The Federal government today sued Corinthian Colleges (Heald, Everest, WyoTech), charging deceptive practices in lending and recruiting. The Chronicle of Higher Education called the charges “jaw-dropping, including these four:

    1. To show high job placement for graduates, they created fake employers, who “hired” graduates, without the students even knowing about it.

    2. They improved their percentage of hired graduates by finding convicted criminals with the same names as their students, and claiming those students were “unavailable for employment” because they were incarcerated.

    3. They paid employers thousands of dollars to hire their graduates briefly, and after two days, were counted as having found a career. In most cases, they were fired after 30 or fewer days.

    4. Their career-finding services consisted largely of passing along Craigslist job listings.

    Corinthian is either closing or trying to sell its 107 campuses. 81,000 students. 6,000 faculty. Regional accreditation. An ".edu" designation.
     
  2. Kizmet

    Kizmet Moderator

    If they're having a fire sale then I'd be willing to take some blank diplomas off their hands. Strictly as a novelty item, of course.
    :scool:
     
  3. LearningAddict

    LearningAddict Well-Known Member

    WOW. LOL!

    Unreal.
     
  4. sanantone

    sanantone Well-Known Member

    Another interesting accusation is that, since their bachelor's programs are so expensive, federal financial aid isn't enough to cover them. So, they offer students private loans with 15% interest rates. These loans have a 3-year default rate of 60%. The federal government is asking Corinthian to forgive all of these loans.
    Corinthian Colleges Sued for Predatory Lending - ABC News

    ITT Tech is also being sued for predatory lending, but they might be in a better financial position to stay in business.
     
  5. CalDog

    CalDog New Member

    Corinthian stock peaked at more than $35/share in 2004.
    It was still worth over $18/share as late as 2010.

    The stock closed today at 9.4 cents.
     
  6. Ted Heiks

    Ted Heiks Moderator and Distinguished Senior Member

    What colleges and universities does Corinthian Colleges own?
     
  7. SteveFoerster

    SteveFoerster Resident Gadfly Staff Member

  8. Ted Heiks

    Ted Heiks Moderator and Distinguished Senior Member

    Is Everest University the same school that used to be Florida Metropolitan University?
     
  9. SteveFoerster

    SteveFoerster Resident Gadfly Staff Member

    Yes. Everest is apparently where Corinthian attached a lot of small schools that they absorbed.
     
  10. Kizmet

    Kizmet Moderator

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