Corinthian College is facing a lawsuit which alleges that it duped students into taking more than $560 million in loans for education they would not gain successful employment with, that it used predatory and misleading advertising to reel students in, committed securities fraud, and used military seals on its advertising without permission. These false advertisements were aimed directly at low income students and military personnel returning from combat in an effort to gain as much federal funding as possible…and that it did.
The school used misrepresentation in its ads regarding job placement success on TV, internet, and through telemarketing in a predatory manner and targeted it specifically towards those who were down on their luck. The lawsuit further alleges that the school misrepresented its job placement to investors and accrediting agencies and ultimately harmed students, investors, and taxpayers through its scam.
The Attorney General Harris has said that its office would be investigating the school and will hold them responsible for any illegal or exploitative activity it uncovers in its investigation and further claims its ads targeted those who had low self-esteem, felt trapped in their economic position, and who felt isolated and knew they would be unfamiliar with the traditional processes to obtain education in a constructive manner and adequately plan for their futures
Corinthian College claimed that for some of its programs it had a full 100% job placement when there is no evidence that even one of its students managed to find a job placement in their field in the required timeline. The company ran millions of ads for its radiology, x-ray, dialysis, and ultrasound technician programs at its California campus when the campus had no such programs. Call center employees were severely reprimanded if they indicated otherwise. Furthermore, Corinthian used official Marine Corps, Coast Guard, Navy and Army seals in its advertising without approval, violating California law.
This company told so many lies they couldn’t keep their stories straight as they told investors they had a 68.1% job placement rate which means they committed securities fraud in addition to its other list of offences. The school went so far as to pay a temp agency to find placements for its students long enough to meet their timeline and then release them and even double counted students as placed to meet the required numbers.
Average tuition for an Associate’s degree with Corinthian cost students, or should we say taxpayers, $34,000; their online Associate’s degree was $34,000; their non-degree health programs were $17,000. As for a Bachelor’s degree, that set back students and taxpayers $70,000. Considering most couldn’t find employment, that’s one expensive piece of paper. All that tuition was certainly profitable for Corinthian as the school reported its worth at $1 billion, most of it gained through its access to federal funding programs.
If you have questions or comments, please chat in the comments below or on the ChallengeStudentDebt Twitter handle.
If you feel you were defrauded by the school you attended or you are being treated poorly as a distressed borrower by your creditors, take the free challenge debt review to find out what options you have regarding your student loans.