Corinthian's schools -- Everest College

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Corinthian's schools -- Everest College

Postby Eric » Fri Jun 20, 2014 8:51 pm

California sues for-profit college company, saying it sought out poor and 'isolated' students

Corinthian Colleges, California's largest career-college company, could go out of business
http://www.mercurynews.com/education/ci ... pany-could


http://www.mercurynews.com/education/ci ... source=pkg

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. Others double-counted gainfully employed grads or fabricated them altogether, it says. Company executives exchanged concerned emails about these problems but continued to hide them, touting inflated job placement numbers to investors, according to the suit.

California Attorney General Kamala Harris announces the filing of a lawsuit in an alleged for-profit college predatory scheme against Corinthian Colleges,

"The predatory scheme devised by executives at Corinthian Colleges, Inc. is unconscionable. Designed to rake in profits and mislead investors, they targeted some of our state's most particularly vulnerable people -- including low-income, single mothers and veterans returning from combat," Harris said in a prepared statement.
Last edited by Eric on Fri Jun 20, 2014 8:57 pm, edited 1 time in total.
Eric

"The best social program is a good job,"
President Ronald Reagan
Eric
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Re: Corinthian's schools -- Everest College

Postby Eric » Fri Jun 20, 2014 8:55 pm

California's largest for-profit career-college chain said Thursday it might go out of business under financial sanctions imposed this month by the U.S. Department of Education.

The schools owned by Corinthian Colleges Inc. -- Heald College, Everest College, Everest Institute and WyoTech -- receive about $1.4 billion in federal student loans and grants, according to the Department of Education.

But the department released a statement Thursday saying it was putting new restrictions on that aid "after the company failed to address concerns about its practices, including falsifying job placement data used in marketing claims to prospective students and allegations of altered grades and attendance."

The colleges will have to wait 21 days to access the funds, which could create a devastating cash flow crisis; if the company is unable to get a short-term loan to bridge the gap, it could go under, it reported Thursday in a Securities and Exchange Commission filing.

Company spokesman Kent Jenkins declined to comment Thursday.

The embattled Corinthian Colleges -- accused of deception and fraud in a pending lawsuit by California's attorney general -- enroll more than 72,000 students nationwide, including 14,000 in the Bay Area.

Like others in the for-profit college sector, Corinthian's trade schools typically cost students tens of thousands of dollars a year, have low graduation rates and rely heavily on taxpayer-funded federal student loans and grants.
Eric

"The best social program is a good job,"
President Ronald Reagan
Eric
Senior Member
 
Posts: 1484
Joined: Fri Jan 26, 2007 5:07 am
Location: UK / USA


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