http://consumerist.com/2014/09/16/feds-sue-corinthian-colleges-for-allegedly-predatory-loan-scheme/
2 replies (most recent on top)
The loans WERE predatory. The intent was discussed openly at meetings. We could only recruit extremely low income students who all qualified for full Pell grant, etc. 90/10 was a huge problem in that situation because there was no way we were going to make it without artificially raising tuition so that 100% of federal aid (typically around $12,500.00 per year or more) would make up less than 90% of what they needed to enroll. None of them have any credit or savings, so we came up with Genesis to be able to package them and count against financial aid for 90/10. We honestly didn't care if the students ever paid it back, we had already made a profit from the Title IV, the Genesis was just gravy. Good old NA had a collections background, though, and was going to squeeze every dollar she could out of the students. Sleazy, sleazy program and typical of CCi.
http://files.consumerfinance.gov/f/201409_cfpb_complaint_corinthian.pdf