Corinthian Colleges Inc. just screwed 16,000 students, and that’s just the latest jag of the sinking iceberg to slip beneath the water.
As of Monday, April 27, 2015, the for-profit faint echo of what used to be known as “higher education” will be shutting down all of its 28 remaining campuses for Everest, Heald and WyoTech schools. According to Bloomberg Business, it’s being called “the biggest collapse in U.S. higher education,” and students were only notified Sunday — the day before.
The fall of Corinthian comes from a move by the U.S. Education Department in which the corporate school was essentially cut off from the fountain of federal student aid last summer. The year before, to put that into perspective for you, the education company took in $1.4 billion worth of student aid. It still had some 72,000 students enrolled in its web of exploitation and deceit when that revenue source was sealed off. The shifty school based in Santa Ana, Calif., was quickly painted into enough of a corner by its dubious practices by then that it had to sell off 50 percent of its 107 campuses to a company known as the Education Credit Management Corp., last November. Most of the alleged practices that got the company into trouble centered on the basics – fudging grades and attendance records while also misrepresenting the success of the school through bogus job-placement rates.
Hmmm… what were the sentences those teachers down in Georgia just received? Seven years in prison?
Chief Executive Officer of Corinthian Jack Massimino, said:
“We have attempted to do everything within our power to provide quality education and an opportunity for a better future for our students.”
Corinthian claims it will be working to help the displaced students settle at alternative colleges, and the U.S. Education Under-Secretary, Ted Mitchell, stated workers in his department would soon begin contacting former Corinthian students in order to go over their options with them, as well as discuss the possibility even of discharging their loans entirely.
Mitchell said in a statement:
“What these students have experienced is unacceptable. As Corinthian closes its doors for good, the department will continue to keep students at the heart of every decision we make.”
Corinthian received orders to cease enrolling new students on April 17 – nine days before students were notified that the next day they would no longer be enrolled in college. A majority of those schools are located in California, but many are also sprinkled throughout the country, popping up here and there in corporate environments like business parks or strip malls with space to spare. In addition to shutting down its many campuses across the country, the Education Department hit the company with a $30 million fee for its shoddy misrepresentation of its job-placement rates post-graduation.