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Corinthian College Fraud Case Study

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The Corinthian Colleges Debacle: Holding For Profit Colleges Accountable

The Corinthian Colleges Debacle unveiled many areas of non-compliance, not only by the for profit private postsecondary education institutions, but also by the control agencies at the state and federal level. The closure of the Corinthian Colleges revealed the inefficiency of the states to provide oversight and enforcement to mandate compliance based on their authority as outlined in existing state laws. The Corinthian Colleges is just one of many for profit private postsecondary education institutions that have faced or will be facing closures. We’ll provide background on what happened that lead to the closures, the impact this has had on student loans, and what factors have …show more content…

What happened to Cause the Closer of Corinthian Colleges

In 2015 Corinthian Colleges closed their doors and left several students looking for answers. Corinthian which owned Everest, Heald College and WyoTech closed its doors after allegations of fraud and a loss in government founding. One of the leading contributors to this collapse was the loss in funding by the federal government and several lawsuits claiming fraudulent job placement claims and consumer complaints (Bernick, 2015). There were also allegations that claimed that Corinthian was using predatory lending practices in low income communities to gain more students (Douglas-Gabriel,2015). Thanks to weakened regulation in the Education department it made it easier for them to target students that would have otherwise not applied for these loans. This collapse of one of America’s largest for profit

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