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Corinthian College Closing Last Schools

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Corinthian College Closes it’s Last Schools

Corinthian College is closing its last schools in Southern California ending a private education scandal here that is now leaving 10,000 students displaced. In a federal investigation of Corinthian college, once the nation’s largest for-profit education company, the company was found to have engaged in predatory lending practices for a very low quality education with few meaningful job prospects. For example, Corinthian’s Heald College in California faces a $30 million fine from the Department of Education for falsifying job placement statistics. Everest and WyoTech are also Corinthian brands in California. These job placement statistics not only attracted students but also made the college eligible for private and federal student loans. This closure affects more than 10,000 California students who now must try to transfer to new school and the problem of what to do with their high student loans.

These student loans were both the profit engine of Corinthian College but also contributed to its downfall. Fueled by relaxed lending standards, Corinthian College profited immensely from the student loan debt accumulated by students. When the federal government found Corinthian college had falsified job placement statistics, it cut off federal student loan eligibility for students. Corinthian College was effectively over. Like many for-profit educational institutions, Corinthian College boomed during the economic depression as many students returned to school to further their careers. Many of these students have returned to the job market not making the money they expected and are now burdened by high student loan debt. If you have student loans from a for-profit educational institution contact a qualified debt settlement attorney today. These loans present a special burden that can be handled by a qualified attorney.

 

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Kevin Fallon McCarthy is the McCarthy Law PLC’s managing attorney and an experienced Phoenix debt attorney. Mr. McCarthy has also worked as general counsel for a large corporation. He has corporate counsel experience in human resource matters, general corporate governance, and union class action litigation.