BLOOMBERG: Corinthian Fined $30 Million for Inflating Job Figures
Career College Central Summary:
The U.S. Education Department fined Corinthian Colleges Inc., the for-profit education chain, $30 million for misrepresenting job-placement rates to current and prospective students.
Corinthian’s Heald College misstated 947 placement rates that inflated the employment prospects of graduates, the agency said.
Heald, a chain of business schools, paid temporary agencies to hire its graduates to work at jobs on its own campuses for as little as two days and counted them as employed, the department said. It also counted placements outside students’ field of study, such as an accounting graduate working at a Taco Bell restaurant, according to the agency.
“This should be a wake-up call for consumers across the country about the abuses that can exist within the for-profit college sector,” U.S. Education Secretary Arne Duncan said in a statement. “We will continue to hold the career college industry accountable and demand reform for the good of students and taxpayers.”
Corinthian, owner of the Everest, Heald and WyoTech for-profit schools, collapsed last summer after the Education Department curtailed its access to federal student aid. The company agreed to sell half of its 107 campuses to Education Credit Management Corp. in November amid allegations that it falsified grades, attendance and job-placement rates.
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