The case against for-profit colleges took an interesting turn last month when a group of senators came together to ask the Department of Education (DOE) to forgive loans taken out by current and former students of embattled Corinthian Colleges.
Corinthian owns a number of college campuses across the country including Everest College, WyoTech, and Heald College.
This comes hot on the heels of Corinthian dismantling its chain of colleges in response to numerous complaints and lawsuits filed by current and former students who alleged that the for-profit outfit engaged in gross misrepresentation of facts just so they could boost their profits.
In particular, Corinthian was accused of inflating tuition fees, misrepresenting job prospects to would-be students, offering low quality education and more.
The senators wrote a scathing letter to the Department of Education imploring the body to forgive these students’ loans on account of it having broad powers to do so. They added that the students shouldn’t have to suffer because of the numerous slights carried out by similar colleges. They went on to state that the government’s efforts to put a band-aid on the situation by stating that students may be able to apply for a loan discharge was far from clear.
The government has, in the past, tried to fix the Corinthian mess by helping the for-profit institution sell its assets to avert a potentially disastrous situation. Corinthian has also been accused of using aggressive debt-collection practices despite the fact that they allegedly knew they were committing fraud by not providing these students with quality education in the first place.
Corinthian College Defends Itself
Corinthian College administration was quick to defend itself, saying that the senators were getting ahead of themselves by assuming that the educational outfit was guilty without waiting for the various cases filed against them to be tried in court.
For profit colleges have been at the forefront of education fraud over the last 5 years given their revenue spikes over a short period of time, partly attributed to the fact that they relied heavily on students taking out federal loans to boost their profits.
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