Scam Alert!: For-Profit School Closing, STILL Recruiting Students
By Consumers Union on Friday, June 27th, 2014
Looks like it’s finally curtains for Corinthian Colleges – the for-profit company behind career colleges like Heald, Everest and WyoTech. Late last week, the company announced in SEC filings that it was planning to close or sell all of its campuses after the Department of Education decided to slow Corinthian’s access to federal money.
The Department’s decision came after it uncovered alleged fraud in Corinthian’s reporting on grades and job placement rates. Corinthian had been getting roughly $1.4 billion a year in taxpayer-funded financial aid dollars to run its campuses.
In an agreement reached between the Department and Corinthian earlier this week, the company announced a plan to sell off campuses and phase out its programs in the next 6 months. Meanwhile, current students who can’t complete their education will be able to get their federal student loans discharged.
Despite the fact that the Corinthian Colleges are going out of business, they’re STILL advertising their programs – something that has drawn the ire of Senator Dick Durbin of Illinois, who took to the Senate floor this week to demand that Corinthian stop enrolling new students during this debacle. California Attorney General Kamala Harris, who filed a lawsuit against Corinthian last year, also announced new charges she is filing against the company, demanding that the schools stop deceptive marketing of their programs and make disclosures to students about their financial troubles.
So if you or anyone you know sees an ad from Heald, Everest or WyoTech – beware! Enrolling at any of those schools would be like jumping onto a sinking ship.
Check out this Department of Education website for updates on the closing campuses.
Have you or someone you know ever taken classes at a Corinthian College? If so, tell us in the comments.