another for profit close to dust..

Corinthian Colleges, California's largest career-college company, could go out of business - San Jose Mercury News

 

Yes, I guess it could. Some pretty bad accusations in this other article: California sues for-profit college company, saying it sought out poor and 'isolated' students - San Jose Mercury News

If the schools did the things they're accused of, I can't say I'd be sorry to see them go. A sample quote:

"Two of Corinthian's schools -- Everest College campuses in Hayward and San Francisco -- went so far as to pay a temporary agency to hire graduates for two days to boost job placement numbers, the suit alleges."

We have Everest College campuses here in Canada; there's one in my town. Here, they are not permitted to confer degrees. Diplomas only. Very expensive ones, it seems, in comparison with public colleges. I can't comment on their Canadian job stats.

Johann

 

Everest College commercials are famous. They have many parodies on YouTube.
[video=youtube;zQYtAX6DFGo]http://www.youtube.com/watch?v=zQYtAX6DFGo[/video]

 

Everest has had a reputation for high student loan default rates, as shown for example by this 2010 story about defaults in California:

In response, Corinthian allegedly developed an innovative "solution" to the high default rate problem:

What is meant by a "no-holds-barred campaign" to direct students into temporary forebearance or deferment? Here are some details:

 

Well, if you're thinking there might be a turnaround, Corinthian's stock is around 33 cents. :smile:

COCO:NASDAQ GS Stock Quote - Corinthian Colleges Inc - Bloomberg

Johann

 

COCO stock peaked at over $35 in 2004. It has lost over 99% of its value since then.

But their management is apparently outstanding, so perhaps there is a turnaround on the horizon. After all, the CEO of Corinthian was awarded a bonus of $1.035 million at the end of fiscal 2013, on top of his base salary of $ 0.9 million.

 

This interesting story about one of the Everest campuses in California was published earlier this month:

 

We have Everest here in Phoenix, and they have a HORRIBLE reputation. Several people that I personally know have had really bad experiences with them. I wouldn't be surprised if the allegations are completely true.

 

Cornintian Lives for another day...

Embattled Corinthian Colleges Reaches Tentative Agreement With Education Department

 

There is an Everest down the road from us. Funny, they send their students to our library for assignments that are due. They use our library, but charge way over the top fees. Interesting.

 

From the article Shawn linked us to: "Corinthian said it will look for new owners for most of its campuses and hopes to have sales agreements in place within about six months."

I like this. :smile: That change will be welcome - especially as current management has been rewarding itself with huge bonuses, while the Titanic was drifting ever closer towards the icebergs...

Yowee - the stock is up, all the way to 42 cents! (It was once $34.) Maybe some others like the news too!

Johann

 

On the other hand, it was at 85 cents as recently as last Wednesday 06/18. It crashed to 28 cents as soon as the bad news came out. It has now recovered a bit, but not to the levels it had a week ago, which suggests that investors are still worried.

 

And they should be. I was being sarcastic - how unusual for me. :smile: The stock has lost 78% of its value in the last three months. With all those bonuses flying around, it looks like management has been far less worried than the investors. In light of that, I do think that the investors might like the prospect of change - hence my faux-jubilant remark.

Johann

PS - All readers. Whatever you do, never take anything I say as investment advice. You'll regret it!

 

Corinthian Colleges is the poster child for what is wrong with for profit education. I resigned my position as an adjunct instructor with Corinthian, because I could not be part of an organization that preys on minority and low income students. The majority of students in my class could not right a sentence, and were required to write papers. Worse, despite receiving an exceptional evaluation; I was scheduled for remedial training because ten students failed my class. I refused to give students false hope who had no business taking college courses. Corinthian's failure, means one less predator in the for profit education market.

 

When I pursued my doctorate at Capella, you could get books through a library arrangement Capella had with the University of Alabama - Huntsville. While deployed in Iraq, I was able to get books sent to me via my APO address in Iraq. I was VERY impressed.

When I returned to the states, I usually went to a major college library if I needed a book. More convenient.

Shawn

 

I guess the same stands for instructors.

 

They have never approached us nor we them. I would venture to say HCC might never do that. Just my wild guess. Now, HCC has partnered with the public library to co-run a branch/campus. Lone Star too. We are partnering with UT Tyler with an engineering program ( library too). I have never heard HCC want to partner with the profits ( Not to pick on them).

 

Sorry for the grammatical error, Grammar Police Officer RFValve; I believe that my point is clear.