Students lose out from death of Corinthian Colleges
Career College Central Summary:
The Obama administration just mortally wounded Corinthian Colleges, a for-profit higher education company, and the reaction was predictable. Corinthian had “finally come to a kind of reckoning,” read a New York Times editorial that called for even more-rigorous regulation to head off exploitation of poor students for their federal loan money.
Across town at the Wall Street Journal’s editorial page, the defenders of the free market complained bitterly that “the Obama administration has targeted for-profit colleges as if they are enemy combatants. … Does the White House plan to liquidate the IRS, too?”
Perhaps from a distance it’s easy to portray the demise of Corinthian as a story with good guys and bad guys. Closer to the ground, like at Corinthian’s campus in Eagan, it looks more complicated.
The only easy call is how this one will turn out for the people with the most at stake, and that’s the mostly poor moms who are just trying to complete some training to land a better job. For them it can’t be a happy ending.
As it turned out, the Department of Education didn’t even mean to shut Corinthian down, having done so more or less by accident. As Wells Fargo Securities analyst Trace Urdan put it, “I almost wish that the department had done it willingly.” At least then it would be easier to figure out where the industry stood with regulators.
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