Corinthian Colleges Socked With $530 Million Judgment

Money Talks News
Krystal Steinmetz
October 29, 2015

https://beta.finance.yahoo.com/news/corinthian-colleges-socked-530-million-051713454.html

 

So, Corinthian gets socked with a fine that the government acknowledges it cannot pay. The entity itself is defunct and no longer has any assets.

The major holdings of Corinthian were transferred to a non-profit operated by the former executives of Corinthian. These same executives suffer no ill consequences for this past judgment.

I'm not exactly sure why anyone finds this to be "good" news. The people who operated in bad faith are still in business leaving a mountain of debt held in the name of, what is effectively at this point, a discarded shell company. The students of Heald are left with a defunct alma mater after having the name that appears on their resumes dragged through the mud and associated with the bad behavior of Everest. And Everest, the source of so many of these problems, continues to operate under the same executives.

Umm...good job, CFPB?

 

Now, this is a disaster that is going to eventually cost everyone. I hope it is not just the tip of the iceberg.

 

I used to teach for Corinthian Colleges, and resigned without actually resigning, I just stopped accepting course solicitations. The course materials were good, the rigor was acceptable, and some of the students were great. The pay wasn't the best, but they made up for it in quantity; I could have taught 6 sections of the same course at the same time if I wanted to (I didn't, I never accept more than 2 at a time, 3 in rare instances).

However, after awhile, I got the impression (apparently correctly) that they would admit literally anyone, and I had some situations with students that would have been comical, had they not been so sad. One student, for an assignment that was a 5-7 page paper on applying a criminological theory to a famous criminal, submitted a 10,000 word copy & paste job of the history of Buffalo, New York. Her discussion responses were also all over the place, it was obvious that she was hypo-manic and probably off her medication. I submitted student-at-risk reports every week on her, and while I don't know what, if anything, went on behind the scenes, she stayed in the class until the end, getting an F grade.