Wednesday, August 1, 2007
Corinthian Colleges Settles California Lawsuit
One of the largest players in the lucrative "business" of for-profit education, Corinthian Colleges, has settled a lawsuit with the California Attorney General's Office. The hits just keep on coming apparently, leaving one wondering if there are any for-profit schools which are not attempting to cheat their students or marks. Corinthian will pay $6.5 million to settle a lawsuit "alleging" that the chain engaged in deceptive business practices by lying about their job placement record. This is an extremely common practice among for-profit schools, along with lying about accreditation or the transferability of credits, ala Crown College or Florida Metropolitan University. For-profit education's business model favors the bottom line at the expense of the students and thus is fatally flawed. There is a press release from the California Attorney General's Office which includes a copy of the complaint and the final judgment. There are so many instances of students being fleeced by these schools that one might wonder if any of these schools are legitimate. When you have the leaders in the for profit industry admitting that they are lying about their capabilities, then can the others be far behind? The for profit education industry is very much like the health club industry according to this article about American Intercontinental University.