{{Use mdy dates|date=June 2022}} {{short description|Former for-profit post-secondary education company}} {{Infobox company | name = Corinthian Colleges, Inc. | logo = | logo_size = | logo_alt = | logo_caption = | logo_padding = | image = | image_size = | image_alt = | image_caption = | former_name = | type = Public | traded_as = {{NASDAQ was|COCO}} | industry = Education | fate = Ceased operations | predecessor = | successor = | founded = {{Start date|1995|02}} | founders = {{unbulleted list|David Moore|Paul St. Pierre|Frank McCord|Dennis Devereux|Lloyd Holland}} | defunct = {{End date|2015|04|27}} | hq_location = | hq_location_city = | hq_location_country = | areas_served = United States, Canada | services = | website = {{webarchive |url=https://web.archive.org/web/20150427170714/http://www.cci.edu/ |date=April 27, 2015 }} }}
'''Corinthian Colleges, Inc.''' ('''CCi''') was a for-profit post-secondary education company in North America. Its subsidiaries offered career-oriented diploma and degree programs in health care, business, criminal justice, transportation technology and maintenance, construction trades, and information technology.<ref>{{cite web|url=http://www.cci.edu/about/history|title=History of Corinthian Colleges Inc.|publisher=Cci.edu|access-date=November 14, 2014|archive-url=https://web.archive.org/web/20141105150557/http://www.cci.edu/about/history|archive-date=November 5, 2014|url-status=dead}}</ref> A remnant of the schools was owned by ECMC under the Altierus Career College brand until the last three campuses were closed in 2022. <ref>{{cite web |last1=Lederman |first1=Doug |title=ECMC to Close Its 3 Altierus Career College Campuses |url=https://www.insidehighered.com/quicktakes/2022/04/26/ecmc-close-its-3-altierus-career-college-campuses |website=www.insidehighered.com |publisher=Inside Higher Education |access-date=11 December 2022}}</ref>
At its peak, CCi operated over one hundred Everest, Heald and WyoTech campuses throughout the United States and Canada.<ref>{{cite web|url=http://www.cci.edu/about/campus-locations|title=Corinthian Colleges Inc. - North America Campus Locations|publisher=Cci.edu|access-date=November 14, 2014|archive-url=https://web.archive.org/web/20141104100958/http://www.cci.edu/about/campus-locations|archive-date=November 4, 2014|url-status=dead}}</ref> The ''Los Angeles Times'' framed Corinthian Colleges as a collection of "castoff" schools that were taken over by Wall Street investors in 1999.<ref>{{cite web|url=https://www.latimes.com/archives/la-xpm-2003-sep-15-fi-corinthian15-story.html|title=Operating Career College Lucrative Vocation for CEO|first=Karen|last=Robinson-Jacobs|date=September 15, 2003|access-date=June 9, 2018|via=LA Times}}</ref>
Corinthian closed their campuses in Canada on February 19, 2015, after the Ontario government suspended their operating license. On April 26, 2015, following a series of legal challenges by state and federal agencies, Corinthian Colleges announced that they would cease operations at all remaining United States locations. The closure affected more than sixteen thousand students and employees.<ref>Accessed February 22, 2022, https://web.archive.org/web/20151101151009/https://www.theglobeandmail.com/news/national/education/ontario-suspends-everest-college-operations-over-financial-concerns/article23107111/</ref> Having been extensively investigated for fraudulent behavior by several jurisdictions, Corinthian Colleges, Inc. and twenty-four of its subsidiaries filed for Chapter 11 bankruptcy in the United States Bankruptcy Court for the District of Delaware on May 4, 2015.<ref>{{Cite news |title=For-profit Corinthian Colleges files for bankruptcy |language=en-US |newspaper=Washington Post |url=https://www.washingtonpost.com/news/business/wp/2015/05/04/for-profit-corinthian-colleges-files-for-bankruptcy/ |access-date=2022-06-02 |issn=0190-8286}}</ref> In June 2022, the U.S. Department of Education announced that it would cancel $5.8 billion in federal student loan debt for 560,000 students who attended Corinthian.<ref>{{cite web |last1=Lobosco |first1=Katie |title=Biden administration cancels $5.8 billion in student loan debt for former Corinthian students |url=https://www.cnn.com/2022/06/01/politics/student-loan-cancellation-corinthian-for-profit/index.html |website=CNN |access-date=June 2, 2022 |date=June 1, 2022}}</ref><ref>{{cite web |last1=Richards |first1=Zoë |title=Education Department to cancel $5.8B in debt for students of Corinthian Colleges |url=https://www.nbcnews.com/politics/white-house/education-department-cancel-58-billion-debt-students-corinthian-colleg-rcna31560 |website=NBC News |access-date=June 2, 2022 |date=June 1, 2022}}</ref>
==History== Corinthian Colleges was founded in February 1995<ref name="cci.edu">{{cite web|url=http://www.cci.edu/about/history|title=History of Corinthian Colleges Inc|publisher=CCi|date=June 30, 2013|access-date=May 1, 2014|archive-url=https://web.archive.org/web/20140427053210/http://www.cci.edu/about/history|archive-date=April 27, 2014|url-status=dead}}</ref> by David Moore, Paul St. Pierre, Frank McCord, Dennis Devereux, and Lloyd Holland of National Education Centers, Inc., a for-profit operator of vocational schools based in Irvine, California. The company, whose business model was predicated on acquiring schools that were fundamentally sound but performing below their potential,<ref>{{cite web|url=http://www.fundinguniverse.com/company-histories/corinthian-colleges-inc-history/|title=History of Corinthian Colleges, Inc. – FundingUniverse|publisher=Fundinguniverse.com|access-date=November 14, 2014}}</ref> expanded rapidly through acquisitions and organic growth.<ref name="cci.edu"/>
;Acquired institutes and colleges<ref>{{cite web |url=http://www.cci.edu/directory/history |title=CCi Directory |publisher=CCi |access-date=May 1, 2014 |archive-url=https://web.archive.org/web/20140416180336/http://www.cci.edu/directory/history |archive-date=April 16, 2014 |url-status=dead }}</ref> {{div col|colwidth=22em}}
*American Motorcycle Institute *Ashmead College (Oregon and Washington) *Blair College (Colorado Springs, Colorado) *Bryman College *Bryman Institute *CDI College *Duff's Business Institute (Pittsburgh, Pennsylvania) *Eton Technical Institute (Port Orchard, Washington) *Florida Metropolitan University *Georgia Medical Institute *Kee Business College *Las Vegas College *National Institute of Technology (NIT) *National School of Technology (NST) *Olympia Career Training Institute *Olympia College *Parks College *Phillips Colleges <ref>{{cite web |url=https://www.chronicle.com/article/merger-creates-largest-u-s-chain-of-trade-schools/|title=Merger Creates Largest U.S. Chain of Trade Schools|author=Lisa Guernsey|date=November 15, 1996|work=The Chronicle of Higher Education|access-date=November 29, 2023}}</ref> **Rutledge College <ref>{{cite web |url=https://greensboro.com/rutledge-college-left-in-uproar/article_b6be048b-0c2e-5ca4-a5a1-25332316a176.html|title=Rutledge College Left in Uproar|author=Dawn DeCwikiel-Kane|date=January 31, 1990|work=Greensboro News and Record|access-date=November 29, 2023}}</ref> *Rochester Business Institute *Sequoia College *Tampa College *Western Business College {{div col end}}
Corinthian Colleges faced numerous investigations and lawsuits, including a federal criminal investigation.<ref>{{cite web |url=http://www.latimes.com/business/la-fi-corinthian-colleges-20140814-story.html|title=Corinthian Colleges tells investors it is facing a criminal probe|author=Chris Kirkham|date=August 13, 2014|work=Los Angeles Times|access-date=November 14, 2014}}</ref> California Attorney General Kamala Harris alleged that Corinthian Colleges targeted single parents living close to the poverty level, a demographic that its internal documents described as "composed of "isolated," 'impatient,' individuals with 'low self-esteem,' who have 'few people in their lives who care about them' and who are "stuck" and "unable to see and plan well for future," through aggressive and persistent internet and telemarketing campaigns and through television ads on daytime shows like Jerry Springer and Maury Povich."<ref>{{cite web|url=http://www.allgov.com/usa/ca/news/where-is-the-money-going/wells-fargo-main-investor-in-nations-worst-private-college-company-140101?news=852046 |title=Wells Fargo Main Investor in Nation's Worst Private College Company |author=Noel Brinkerhoff |publisher=Allgov.com |date=January 1, 2014 |access-date=May 1, 2014}}</ref>
On July 3, 2014, Corinthian Colleges agreed to execute a shutdown of twelve schools and sell off eighty-five other schools.<ref name="LAT">{{cite web|url=http://www.latimes.com/business/la-fi-corinthian-colleges-agreement-20140704-story.html|title=Corinthian Colleges will sell 85 schools, close 12 others |author=Chris Kirkham|date=July 4, 2014|work=Los Angeles Times|access-date=November 14, 2014}}</ref><ref name="SJM">{{cite web|url=http://www.mercurynews.com/education/ci_26089128/corinthian-colleges-sell-85-u-s-campuses-and?nstrack=sid:16005748-met:0000108-cat:1009031-order:4|title=Corinthian Colleges to sell 85 U.S. campuses and close 12 under new agreement|work=Mercurynews.com|date=July 3, 2014 |access-date=November 14, 2014}}</ref> On February 19, 2015, the government of Ontario suspended the company's operation license, resulting in the immediate closure of all Canadian campuses.<ref>{{Cite web |title=Canadian regulators shut down Corinthian subsidiary |url=https://www.highereddive.com/news/canadian-regulators-shut-down-corinthian-subsidiary/367709/ |access-date=2022-06-02 |website=Higher Ed Dive |language=en-US}}</ref>
In February 2015, the nonprofit Educational Credit Management Corporation took ownership of more than half of Corinthian Colleges campuses, agreeing to forgive student debt on Corinthian College's Genesis loans.<ref>{{cite web|url=https://www.washingtonpost.com/news/business/wp/2015/02/03/heres-how-a-debt-collector-plans-to-turn-around-failing-for-profit-colleges/|title=Here's how a debt collector plans to turn around failing for-profit colleges|first=Danielle|last=Douglas-Gabriel|date=February 3, 2015|access-date=June 9, 2018 |via=washingtonpost.com}}</ref><ref name=gleason>{{cite news|last1=Gleason|first1=Stephanie|last2=Zibel|first2=Alan|title=Corinthian Colleges Buyer Agrees to Forgive $480 Million in Student Loans|url=https://www.wsj.com/articles/corinthian-colleges-buyer-agrees-to-forgive-480-million-in-student-loans-1422991748|access-date=February 3, 2015|work=The Wall Street Journal|date=February 3, 2015}}</ref>
On April 26, 2015, Corinthian Colleges announced that they would cease operations at all remaining locations effective April 27, a move affecting more than sixteen thousand students and employees.<ref name="Los Angeles Times 2015-04-26">{{cite news |last=Kirkham |first=Chris |url=http://www.latimes.com/business/la-fi-corinthian-colleges-shuts-down-campuses-20150426-story.html |title=Corinthian Colleges to shut down more than two dozen remaining schools |work=Los Angeles Times |date=April 26, 2015 |access-date=April 26, 2015 }}</ref>
On May 4, 2015, Corinthian filed for bankruptcy in Delaware.<ref>{{cite news|url=http://www.sbsun.com/social-affairs/20150504/corinthian-colleges-declares-bankruptcy-amid-push-for-new-legislation-to-help-students|title=Corinthian Colleges declares bankruptcy amid push for new legislation to help students|last=Yarbrough|first=Beau|date=May 4, 2015|work=San Bernardino County Sun|access-date=May 5, 2015}}</ref><ref>{{cite web|title=Corinthian Colleges Chapter 11 Petition|url=https://www.pacermonitor.com/view/OKPRZPQ/Corinthian_Colleges_Inc__debke-15-10952__0001.0.pdf|publisher=PacerMonitor|access-date=June 7, 2016}}</ref>
==Schools==
===Everest=== CCi operated Everest campuses in the United States and Canada, although all US campuses were to be sold or closed beginning on July 3, 2014, leaving only the Canadian campuses under CCi's control.<ref name="LAT" /><ref name="SJM" />
Everest Institute offered diploma programs.<ref name="everest.edu">{{cite web |url=http://www.everest.edu/programs/complete_list |title=Everest Programs by State |publisher=Everest |access-date=May 1, 2014 |archive-date=April 16, 2014 |archive-url=https://web.archive.org/web/20140416191840/http://www.everest.edu/programs/complete_list |url-status=dead }}</ref> Everest College offered diploma and associate degree programs. Everest University offered diploma, associate, bachelor's, and master's degree programs.<ref name="everest.edu"/> There were ten Everest University campuses across Florida, which were formerly known as Florida Metropolitan University.<ref>{{cite web|url=http://fmu.edu/ |title=FMU has changed names to Everest University |publisher=FMU |access-date=May 1, 2014}}</ref>
On February 19, 2015, all 14 Everest campuses in Ontario, Canada were shut down. 2300 students and over 500 staff were affected by the closures.<ref>{{cite news|url=http://www.cbc.ca/news/canada/ottawa/everest-college-students-in-ottawa-share-anger-at-sudden-closure-1.2963724|title=Everest College students in Ottawa share anger at sudden closure|publisher=CBC News|date=February 19, 2015}}</ref><ref>{{cite news|url=https://www.bloomberg.com/news/articles/2015-02-20/corinthian-s-14-schools-in-canada-shut-down-by-government|title=Corinthian's 14 Schools in Canada Shut Down by Government|publisher=Bloomberg|date=February 20, 2015}}</ref> CCi has since filed for bankruptcy in Canada due to the closures.
===Everest University Online=== Everest University Online (EUO), a division of Everest University, offered online degree programs.<ref>{{cite web |url=http://www.everestonline.edu/online-degrees |title=Earn Your Degree Online |publisher=Everestonline |access-date=May 1, 2014 |archive-date=June 29, 2014 |archive-url=https://web.archive.org/web/20140629175428/http://www.everestonline.edu/online-degrees |url-status=dead }}</ref> EUO was headquartered in Tampa, Florida.
===Everest College Phoenix=== Everest College Phoenix offered bachelor's degree, associate degree, and diploma programs.<ref>{{cite web |url=http://www.everestcollegephoenix.edu/ |title=Everest College Phoenix |publisher=Everest College Phoenix |access-date=May 1, 2014 |archive-url=https://web.archive.org/web/20140517035028/http://everestcollegephoenix.edu/ |archive-date=May 17, 2014 |url-status=dead }}</ref> Everest College Phoenix had campuses in Phoenix and Mesa, Arizona, as well as an online learning center.<ref>{{cite web |url=http://www.everestcollegephoenix.edu/locations/ |title=Everest College Phoenix Campus Locations |publisher=Everest College Phoenix |access-date=May 1, 2014 |archive-url=https://web.archive.org/web/20140418032327/http://www.everestcollegephoenix.edu/locations |archive-date=April 18, 2014 |url-status=dead }}</ref>
Everest College Phoenix was regionally accredited by the Higher Learning Commission.<ref>{{cite web |url=http://www.everestcollegephoenix.edu/about/accreditation |title=Accreditation & Licensure |publisher=Everest College Phoenix |access-date=May 1, 2014 |archive-url=https://web.archive.org/web/20140417201145/http://www.everestcollegephoenix.edu/about/accreditation |archive-date=April 17, 2014 |url-status=dead }}</ref>
===Heald College===
Heald College was one of the nation's oldest business career colleges in the Western United States, with roots extending back to 1863.<ref name="http://www.cci.edu/schools">{{cite web |url=http://www.cci.edu/schools |title=Our Schools |publisher=CCi |access-date=May 1, 2014 |url-status=dead |archive-url=https://web.archive.org/web/20150427170714/http://www.cci.edu/ |archive-date=April 27, 2015 }}</ref> Heald offered associate degree, diploma, and certificate programs.<ref>{{cite web |url=http://www.heald.edu/about |title=About Heald College |publisher=Heald College |access-date=May 1, 2014 |archive-url=https://web.archive.org/web/20140330173112/http://www.heald.edu/about |archive-date=March 30, 2014 |url-status=dead }}</ref>
Heald College was regionally accredited by the Western Association of Schools and Colleges Senior College and University Commission.<ref name="wascsenior.org">{{cite web|url=http://www.wascsenior.org/institutions/heald-college |title=Statement of Accreditation Status: Heald College |publisher=WASC Senior |date=June 15, 2012 |access-date=May 1, 2014}}</ref> Heald College had campuses in California, Oregon, and Hawaii, as well as an online learning center.<ref>{{cite web |url=http://www.heald.edu/locations |title=Heald College Locations |publisher=Heald College |access-date=May 1, 2014 |archive-url=https://web.archive.org/web/20140517040648/http://www.heald.edu/locations |archive-date=May 17, 2014 |url-status=dead }}</ref>
In November 2009, it was announced that CCi was purchasing Heald's parent company for $395 million.<ref name="bizjournals.com">{{cite news| url=http://www.bizjournals.com/pacific/stories/2009/11/09/story6.html | title=Sale of Heald Colleges could lead to more student options|publisher=Bizjournals.com|access-date=November 14, 2014}}</ref> In January 2010, CCi announced that it had completed the acquisition.<ref>{{cite web|url=http://www.rttnews.com/1170766/corinthian-colleges-completes-acquisition-of-heald-capital-llc-quick-facts.aspx |title=Corinthian Colleges Completes Acquisition Of Heald Capital LLC - Quick Facts |publisher=RTT News |date=January 5, 2010 |access-date=May 1, 2014}}</ref> CCi retained the Heald name, and it was reported that it also retained its faculty and staff.<ref name="bizjournals.com"/>
===WyoTech===
WyoTech offered career-oriented training for mechanical and technical occupations.<ref name="http://www.cci.edu/schools"/> WyoTech had campuses in Pennsylvania, Florida, California, and Wyoming.<ref>{{cite web |url=http://www.wyotech.edu/locations/ |title=WyoTech Locations |publisher=WyoTech |access-date=May 1, 2014 |archive-url=https://web.archive.org/web/20140416163425/http://www.wyotech.edu/locations/ |archive-date=April 16, 2014 |url-status=dead }}</ref> As of November 2018, all the campuses except the Laramie, Wyoming campus were closed; the remaining Laramie campus came under new ownership, providing solely automotive-related training.<ref>{{cite web|url=https://www.wyotech.edu/reopens/ |title=We're Back |publisher=WyoTech |access-date=December 1, 2018}}</ref>
==Accreditation==
Everest College Phoenix campuses were regionally institutionally accredited by Higher Learning Commission.<ref name="Ope.ed.gov">{{cite web|url=http://ope.ed.gov/accreditation/Index.aspx|title=U.S. Department of Education Database of Accredited Postsecondary Institutions and Programs|publisher=Ope.ed.gov|access-date=November 14, 2014}}</ref><ref name="Accreditation">{{cite web|url=http://www.everest.edu/legal/accreditation#school-975|title=Accreditation|publisher=Everest.edu|access-date=November 14, 2014|archive-date=November 29, 2014|archive-url=https://web.archive.org/web/20141129031332/http://www.everest.edu/legal/accreditation#school-975|url-status=dead}}</ref> Heald College campuses are regionally institutionally accredited by the Senior College and University Commission – Western Association of Schools and Colleges (WASC Senior).<ref name="wascsenior.org"/> Everest Institute, Everest College, Everest University, and Wyotech campuses are nationally institutionally accredited by one of two national accrediting agencies: Accrediting Commission of Career Schools and Colleges (ACCSC); or Accrediting Council for Independent Colleges and Schools (ACICS).<ref name="Ope.ed.gov"/><ref name="Accreditation"/><ref>{{cite web|url=http://www.wyotech.edu/accreditations|title=Why WyoTech Accreditation Matters|publisher=Wyotech.edu|access-date=November 14, 2014|archive-url=https://web.archive.org/web/20141201001828/http://www.wyotech.edu/accreditations|archive-date=December 1, 2014|url-status=dead}}</ref>
== Leadership == Corinthian CEO Jack Massimino earned $3 million in 2010, and four other executives made over $1 million that year.<ref name = "Dayen">Dayen, D. (2015) [http://www.huffingtonpost.com/2015/06/04/corinthian-colleges-loan-forgiveness_n_7492908.html?ir=Politics&ncid=newsltushpmg00000003 'Chipping Away At My Soul': Insiders Detail The Decline And Fall Of Corinthian's For-Profit College Empire]. Huffington Post, June 4, 2015</ref> Eeva Deshon, the president and CEO of Heald College initiated a petition on Change.org to collect positive testimonials about the college, despite the largely negative evaluations by students.<ref name = "Dayen"/>
==Faculty and students== As of December 31, 2013, CCi's total student population was 77,584.<ref>{{cite web|author=Mediha DiMartino |url=http://www.ocbj.com/news/2014/feb/05/corinthian-shares-drop/ |title=Corinthian Shares Drop |work=Orange County Business Journal |date=February 5, 2014 |access-date=May 1, 2014}}</ref> As with the entire education sector, CCi had faced a decrease in enrollment and a corresponding depressed stock price. CCi's top mutual fund holder was Wells Fargo Advantage Small Cap Value Fund.<ref>{{cite web|url=https://finance.yahoo.com/q/mh?s=COCO+Major+Holders |title=Corinthian Colleges Inc. (COCO) |publisher=Yahoo! Finance |access-date=May 1, 2014}}</ref>
As of June 30, 2013, CCi had approximately 15,200 employees in North America, including 6,000 full-time and part-time faculty members.<ref name="cci.edu"/> For five consecutive years, CCi had been named a Top Workplace in Orange County, California where its headquarters are located.<ref>{{cite web |url=http://www.topworkplaces.com/frontend.php/regional-list/company/ocregister/corinthian-colleges-inc |title=Corinthian Colleges, Inc. |publisher=Top Work Places |access-date=May 1, 2014 |archive-date=February 1, 2014 |archive-url=https://web.archive.org/web/20140201224037/http://www.topworkplaces.com/frontend.php/regional-list/company/ocregister/corinthian-colleges-inc |url-status=dead }}</ref>
In 2014, a librarian at the southern California campus of Everest College quit her position when she learned a student she was assisting could only read at the third-grade level, may have a developmental disability, and was unlikely to find work in his chosen field. She stated that the student was unlikely to understand the financial burdens of the enrollment documents he signed. The librarian resigned out of principle after an unsuccessful attempt to resolve the issue with administration.<ref>{{cite web|url=https://www.huffingtonpost.com/davidhalperin/for-profit-college-enroll_b_5433550.html|title=For-Profit College Enrolls, "Exploits" Student Who Reads at Third-grade Level|first=David|last=Halperin|website=HuffPost |date=June 2, 2014|access-date=June 9, 2018}}</ref><ref>{{cite journal|url=http://www.slate.com/blogs/moneybox/2014/06/03/for_profit_college_sleaze_everest_admits_a_student_with_a_third_grade_reading.html|title=This For-Profit College Admitted a Student With a Third-Grade Reading Level|first=Jordan|last=Weissmann|date=June 3, 2014|access-date=June 9, 2018|journal=Slate}}</ref>
==Financial aid== The Higher Education Act provides that a private, for-profit institution, such as CCi's institutions, may derive no more than 90% of its revenue from the Title IV federal student aid programs.<ref>{{cite web|url=http://www2.ed.gov/offices/OSFAP/training/materials/90-10slides.pdf |title=90/10 Regulation & Calculation |publisher=U.S. Department of Education |access-date=May 1, 2014}}</ref> In 2010, CCi reported that it received 81.9% of revenue from Title IV federal student aid programs. <ref>{{cite web|url=http://www.help.senate.gov/imo/media/for_profit_report/Appendixes/Appendix09.pdf |title=Appendix 9: Funds Reported Pursuant to 90/10 Rule by Company |publisher=U.S. Senate |access-date=May 1, 2014}}</ref> Corinthian Colleges (CCI) acquired QuickStart Intelligence in summer 2012, an Irvine, California-based, privately held technology training company. As a B2B revenue stream; CCI acquired QuickStart Intelligence to leverage the 10%, non-government funding essential to back the additional student loans for CCi's core adult learning programs.
;Student loan default rate A significant requirement imposed by Congress is a limitation on participation in Title IV programs by institutions whose former students default on the repayment of federal student loans in excess of specified rates ("Cohort Default Rates").<ref>{{cite web|url=http://www.finaid.org/loans/cohortdefaultrates.phtml |title=Cohort Default Rates |publisher=FinAid |access-date=May 1, 2014}}</ref> On March 25, 2013, CCi received a draft three-year Cohort Default Rates from the U.S. Department of Education for students who entered repayment during the federal fiscal year ending September 30, 2010 (the "2010 Cohort"), measured over three federal fiscal years of borrower repayment. The weighted average of CCi's institutions was 19.0%, a 9.0 percentage point decrease from the 28.0% weighted average for the three-year cohort default rate for students who entered repayment during the prior fiscal year.<ref name="files.shareholder.com">{{cite web |url=http://files.shareholder.com/downloads/COCO/2790035029x0xS1047469-13-8803/1066134/filing.pdf |title=Corinthian Colleges Inc Form 10-K (Annual Report) |publisher=Shareholder.com |date=September 3, 2013 |access-date=May 1, 2014 |archive-url=https://web.archive.org/web/20140201150233/http://files.shareholder.com/downloads/COCO/2790035029x0xS1047469-13-8803/1066134/filing.pdf |archive-date=February 1, 2014 |url-status=dead }}</ref> For the 2010 Cohort, none of CCi's institutions exceeded the default threshold set by the U.S. Department of Education.<ref name="files.shareholder.com"/>
;Loan forgiveness On June 1, 2022, the U.S. Department of Education announced it would forgive $5.8 billion in federal student loans made to Corinthian College students between 1995 and 2015, which forgiveness would impact 560,000 borrowers and would be the single largest discharge of student loans in history according to the department.<ref name=NPR>{{cite news |last1=Archie |first1=Ayana |last2=Turner |first2=Cory |title=U.S. will forgive $5.8 billion of loans to Corinthian Colleges students |url=https://www.npr.org/2022/06/02/1101424651/corinthian-colleges-student-loan-forgiveness |access-date=2 June 2022 |work=NPR |date=June 2, 2022}}</ref><ref name=CTR/><ref name=POL/>
==Legal proceedings==
Corinthian Colleges was investigated in Canada and by federal authorities in the United States, and by several states attorneys general for deceptive advertising and other fraudulent acts.
===California=== In 2008, a class action suit was filed against CCI and a wholly owned subsidiary in Santa Clara Superior Court on behalf of graduates of Bryman College's medical assistant vocational programs. The lawsuit alleged that Bryman made untrue or misleading statements to students related to employment success, in order to induce them to enroll and stay enrolled in their medical training programs.<ref>{{cite news| url=https://www.reuters.com/article/2008/03/12/idUS225817+12-Mar-2008+PRN20080312 | archive-url=https://web.archive.org/web/20140417032357/http://www.reuters.com/article/2008/03/12/idUS225817+12-Mar-2008+PRN20080312 | url-status=dead | archive-date=April 17, 2014 | work=Reuters | title=Class Action Suit Filed Against Corinthian Colleges, Inc. on Behalf of Medical Assistant | date=March 12, 2008}}</ref> This case was ultimately dismissed.<ref>{{cite web|url=http://www.sccaseinfo.org/pa6.asp?full_case_number=1-07-CV-102335 |title=Leask, Et Al V. Corinthian Colleges, Inc., Et Al. |publisher=Superior Court of California |access-date=May 1, 2014}}</ref>
In July 2007, the California Attorney General threatened to file suit against Corinthian Colleges. Corinthian issued a statement saying: "We disagree with the Attorney General's conclusions, but we are pleased to have this matter behind us. The agreement is not evidence of wrongdoing, and the company specifically denied any wrongdoing as part of the settlement. We are fully committed to providing quality education and job placement services for students and to being in compliance with state law and regulation."<ref name="ocregister.com">{{cite news |url=http://www.ocregister.com/articles/corinthian-11097-students-general.html |title=Corinthian to pay $6.5 million |author=Andrew Galvin |work=Orange County Register |date=August 1, 2007 |access-date=May 1, 2014}}</ref>
In October 2013, the State of California again sued CCi alleging "false and predatory advertising, intentional misrepresentations to students, securities fraud and unlawful use of military seals in advertisements".<ref>{{cite news|url=https://www.latimes.com/business/la-xpm-2013-oct-10-la-fi-mo-corinthian-colleges-kamala-harris-lawsuit-20131010-story.html |work=Los Angeles Times |first=Shan |last=Li |title=Attorney general accuses Corinthian Colleges of "predatory" ads |date=October 10, 2013}}</ref><ref name=2013_investigation>{{cite web |url=http://oag.ca.gov/news/press-releases/attorney-general-kamala-d-harris-files-suit-alleged-profit-college-predatory |title=Attorney General Kamala D. Harris Files Suit in Alleged For-Profit College Predatory Scheme |publisher=California Office of the Attorney General|date=October 10, 2014}}</ref> According to the ''Sacramento Bee'', fourteen Everest College campuses registered three-year default rates on student loans of more than 20 percent; eight were more than 30 percent.<ref>{{Cite web |url=http://www.sacbee.com/2013/10/27/5855028/heald-college-students-echo-california.html#storylink=cpy |title=Heald College students echo California attorney general's complaints about job prospects - Capitol and California - the Sacramento Bee |access-date=June 9, 2015 |archive-url=https://web.archive.org/web/20131208005603/http://www.sacbee.com/2013/10/27/5855028/heald-college-students-echo-california.html#storylink=cpy |archive-date=December 8, 2013 |url-status=dead }}</ref>
In November 2013, CCi issued a statement asserting that the California Attorney General's complaint was "a document built on a foundation of misquoted, deceptively excerpted and—at best—misunderstood materials."<ref name="ReferenceA">{{cite web |url=http://files.shareholder.com/downloads/COCO/1845305167x0x709108/11BC55FD-B86F-45DB-B082-5C6AEB6D8D30/CCi_Response_to_California_Attorney_General_Lawsuit.pdf |title=CCi's response to California AG lawsuit |publisher=Shareholder.com |access-date=November 14, 2014 |archive-url=https://web.archive.org/web/20140201150258/http://files.shareholder.com/downloads/COCO/1845305167x0x709108/11BC55FD-B86F-45DB-B082-5C6AEB6D8D30/CCi_Response_to_California_Attorney_General_Lawsuit.pdf |archive-date=February 1, 2014 |url-status=dead }}</ref> It went on to say that the California Attorney General was "wrongly accusing our schools of inflating job placement statistics for our graduates".<ref name="ReferenceA" /> CCi indicated that it planned to "vigorously defend the integrity of the work we do for our students and graduates".<ref name="ReferenceA" />
California Attorney General Kamala Harris filed a complaint alleging that CCI had engaged in a predatory marketing campaign targeting job seekers and single parents with incomes near the federal poverty level. <ref>{{cite web|url=http://oag.ca.gov/news/press-releases/attorney-general-kamala-d-harris-files-suit-alleged-profit-college-predatory |title=Attorney General Kamala D. Harris Files Suit in Alleged For-Profit College Predatory Scheme |publisher=California Office of the Attorney General |date=October 10, 2013 |access-date=May 1, 2014}}</ref> The Department of Justice obtained internal company documents in which CCI employees described the company's target demographic as "isolated", "impatient", individuals with "low self-esteem", who have "few people in their lives who care about them" and who are "unable to see and plan well for future". The complaint alleged that CCI had used aggressive Internet and telemarketing campaigns, as well as television ads on daytime shows like ''Jerry Springer'' and ''Maury Povich'' to reach these individuals.<ref name="Huffington Post">{{cite news| url=http://www.huffingtonpost.com/davidhalperin/who-owns-the-awful-corint_b_4101323.html |work=Huffington Post |title=Who Owns The Awful Corinthian Colleges? Wells Fargo, Marc Morial, Pension Funds |date=October 15, 2013}}</ref><ref>{{cite web|url=http://getoutofdebt.org/61728/california-sues-number-colleges-bad-stuff|title=California Sues a Number of Colleges for Doing Bad Stuff|author=+Steve Rhode|work=Get Out of Debt Guy - Steve Rhode|date=October 11, 2013 |access-date=March 17, 2015}}</ref>{{better source|reason=Source is non-reliable blog which cites primary court documents. A reliable secondary source would be better.|date=February 2015}}
===Federal investigation in the United States=== On October 17, 2007, U.S. Department of Education investigators seized records at Florida campuses of for-profit colleges, including CCi's former National School of Technology in Fort Lauderdale, Florida, and Florida Career College (a division of Anthem Education Group) in Lauderdale Lakes, Florida and Pembroke Pines, Florida.<ref name=2007_fed_investigation>{{cite web |url=http://chronicle.com/article/Corinthian-Colleges-School-Is/39787|title=Corinthian Colleges School Is Latest Florida Campus to Be Scene of Federal Raid |work=The Chronicle of Higher Education |date=October 17, 2007}}</ref> The school reported that it was not informed why the records were seized or why similar actions had been taken against other institutions in the area.<ref name="Sun Sentinel">{{cite news|url=http://articles.sun-sentinel.com/2007-10-18/news/0710170481_1_school-officials-fort-lauderdale-school-search-warrant |archive-url=https://web.archive.org/web/20140417065228/http://articles.sun-sentinel.com/2007-10-18/news/0710170481_1_school-officials-fort-lauderdale-school-search-warrant |url-status=dead |archive-date=April 17, 2014 |author=Brian Haas |author2=Barbara Hijek |title=Another career college raided |work=Sun Sentinel |date=October 18, 2007 |access-date=May 1, 2014}}</ref> The campus reopened the next day.<ref name="Sun Sentinel"/>
In June 2013, CCi disclosed that it was under investigation by the Securities and Exchange Commission (SEC).<ref>{{cite news |url=https://www.wsj.com/article/BT-CO-20130610-711507.html |work=The Wall Street Journal |title=Corinthian Colleges Under Investigation by SEC |access-date=November 14, 2014 }}{{Dead link|date=August 2022 |bot=InternetArchiveBot |fix-attempted=yes }}</ref> CCi is cooperating with the SEC in its investigation. The SEC did not file any actions against CCi in connection with this investigation.
In November 2013, the US Consumer Financial Protection Bureau reported that they were investigating CCi.<ref>{{cite news |url=https://www.bloomberg.com/news/2013-11-22/for-profit-colleges-face-consumer-bureau-probe-on-lending-roles.html |publisher=Bloomberg |title=For-Profit Colleges Face Consumer Bureau Probe on Lending Roles|access-date=November 14, 2014}}</ref> In December 2013, CCi received a "Notice and Opportunity to Respond and Advise" letter from the CFPB.<ref name="ReferenceB">{{cite web |url=http://files.shareholder.com/downloads/COCO/0x0x723161/E5CBFDDB-D261-44F2-A469-6CE7CA744A28/CFPB_NORA_Letter_-_Background___Key_Points_2414.pdf |title=Corinthian Colleges Inc.: CFPB Investigation/Company Student Lending Programs: Background/Key Points |publisher=Shareholder.com |date=February 4, 2014 |access-date=May 1, 2014 |archive-url=https://web.archive.org/web/20140417055346/http://files.shareholder.com/downloads/COCO/0x0x723161/E5CBFDDB-D261-44F2-A469-6CE7CA744A28/CFPB_NORA_Letter_-_Background___Key_Points_2414.pdf |archive-date=April 17, 2014 |url-status=dead }}</ref> CCi responded by stating that it "believes that its acts and practices relating to student loans are lawful and that its lending program is essential to many students".<ref name="ReferenceB" /> The company also explained that the loans offered under the program are "modest in size and have reasonable interest rates", and that the loans allow many students to attend college who otherwise would not have the opportunity to do so.<ref name="ReferenceB" /> The average loan amount per borrower is $4,700 and the average annual interest rate is 8.5 percent and the maximum rate is 9.9 percent. Loans are only offered to students who have a gap between their educational costs and the available financial aid from all other government and personal sources.<ref name="ReferenceB" /> The CFPB filed a lawsuit against Corinthian in September 2014 over its loan program and debt collection practices.<ref>{{cite web|url=http://www.insidearm.com/daily/debt-buying-topics/debt-buying/cfpb-sues-for-profit-college-for-fdcpa-violations-and-predatory-loan-program/ |title=CFPB Sues For-Profit College for FDCPA Violations and Predatory Loan Program |publisher=insideARM.com |date=September 17, 2014 |access-date=November 21, 2014}}</ref>
In April 2015, the college was fined almost $30 million by the U.S. Department of Education. The department found the school had misled students and loan agencies about the prospects for graduates to find jobs.<ref>{{cite news |last1=Nasiripour |first1=Shahien |title=Herald College Fined For Misleading Students About Job Prospects|url=http://www.huffingtonpost.com/2015/04/14/heald-college-fine-jobs_n_7067056.html|access-date=April 15, 2015|work=Huffington Post|date=April 15, 2015}}</ref> Within two weeks, the college shut down.
In May 2018, a federal judge ordered the U.S. Department of Education to stop collecting on student loans related to Corinthian. In October 2019 the same judge held U.S. Education Secretary Betsy DeVos in contempt of court because the Department had continued collecting on 16,000 such loans in spite of the court order.<ref>{{cite news|url=https://www.politico.com/news/2019/10/24/judge-holds-betsy-devos-in-contempt-057012|title=DeVos held in contempt for violating judge's order on student loans|last=Stratford|first=Michael|date=October 24, 2019|work=Politico|access-date=October 25, 2019}}</ref>
;Loan forgiveness On June 1, 2022, the U.S. Department of Education announced that it would cancel all federal student loans owed by more than 560,000 students who attended Corinthian Colleges between 1995 and 2015. The amount forgiven would total $5.8 billion and would be the single largest discharge of student loans in history according to the department.<ref name=NPR/><ref name=CTR>{{Cite web |title=Biden administration erases debt of former Corinthian College students |url=https://www.chicagotribune.com/nation-world/ct-aud-nw-student-debt-corinthian-colleges-20220601-uhhmmbuvb5dzrbegofqctxwc6e-story.html |access-date=June 2, 2022 |website=Chicago Tribune|date=June 2022 }}</ref><ref name=POL>{{Cite web |last=Stratford |first=Michael |title=Biden administration forgives all federal student loan debt for 560K Corinthian borrowers |url=https://www.politico.com/news/2022/06/01/biden-administration-student-loan-debt-00036572 |access-date=June 2, 2022 |website=POLITICO |date=June 2022 |language=en}}</ref>
===Other state investigations=== In 2004, a former student from Florida Metropolitan University initiated an action against CCi, claiming he was misled with respect to the school's accreditation and his ability to transfer credits.<ref name=2004_investigation>{{cite web |url=http://www2.orlandoweekly.com/features/story.asp?id=526 |title=Bad Education |work=Orlando Weekly |date=April 4, 2005 |access-date=April 16, 2014}}</ref> The lawsuit proceeded in arbitration pursuant to the agreement between the parties. After hearing all of the evidence, the arbitrator found in favor of CCi on all counts and dismissed the lawsuit.<ref name=2004_investigation1>{{cite web |url=http://www.send2press.com/newswire/2006-01-0123-004.shtml |title=Corinthian Colleges Reports Favorable Arbitration Award in Satz Case - Arbitrator Finds in Favor of Company on All Counts |work=U.S. News & World Report|date=January 23, 2006 |access-date=April 15, 2014}}</ref>
In April 2005, fourteen students from Bryman College's Tacoma, Washington campus filed an action against CCi in the Superior Court of the State of Washington. The students claimed they did not receive proper training for their careers in medical assisting, that they were misled about the program's accreditation status, their eligibility to take a national certification exam, the transferability of their credits, and the availability of internships. The case was moved to the United States District Court for the Western District of Washington and was ultimately dismissed.
In August 2007, the State of Florida closed an investigation into Florida Metropolitan University with no fines, penalties or findings of wrongdoing.<ref name="chronicle.com">{{cite news|author=Charles Huckabee |url=http://chronicle.com/article/Florida-Attorney-General/39895 |title=Florida Attorney General Settles With Corinthian Division |work=The Chronicle of Higher Education |date=November 6, 2007 |access-date=May 1, 2014}}</ref> The Florida Office of the Attorney General and Florida Metropolitan University entered into an Assurance of Voluntary Compliance acknowledging that Florida Metropolitan University participates in the Florida Statewide Course Numbering System to facilitate the transfer of eligible credits to other institutions. Florida Metropolitan University agreed to continue its efforts to help students with transfer credits and to provide students with clear disclosures.<ref name="chronicle.com" />
CCi is awaiting the outcome of regulatory investigations by the SEC and state prosecutors. On January 24, 2014, the Iowa Attorney General's office notified CCi that it is leading an investigation by thirteen states into CCi's business practices.<ref name="online.wsj.com">{{cite news |url=https://www.wsj.com/article/BT-CO-20140127-712168.html |work=The Wall Street Journal |title=States Expand For-Profit Education Probe |access-date=November 14, 2014 }}{{Dead link|date=April 2023 |bot=InternetArchiveBot |fix-attempted=yes }}</ref> CCi stated that it intends to cooperate.<ref name="online.wsj.com" /> No state attorney general case has been tried and no findings adverse to CCi have been made.
On February 23, 2015, fifteen former and current students of Corinthian Colleges announced they were going on "debt strike", refusing to pay loans accrued for their time at Corinthian schools. They originally called themselves the "Corinthian 15", and after growing, as of April 1, are known as the "Corinthian 100" with 107 members. They are currently pursuing "Defense to Repayment" legal action against Corinthian. Representatives were given a meeting with the Department of Education and the Consumer Financial Protection Bureau.<ref>{{cite news|last1=Douglas-Gabriel|first1=Danielle|title=A dangerous revolt: People are refusing to pay back student loans |url=https://www.washingtonpost.com/news/get-there/wp/2015/02/25/a-dangerous-revolt-people-are-refusing-to-pay-back-student-loans/ |access-date=March 2, 2015|newspaper=The Washington Post|date=February 25, 2015}}</ref><ref>{{cite web |last1=Kamenetz|first1=Anya|title=Activists Stop Paying Their Student Loans|url=https://www.npr.org/blogs/ed/2015/03/31/396585597/activists-stop-paying-their-student-loans|publisher=NPR|access-date=April 1, 2015}}</ref><ref>Tamar Lewin, "For-Profit Colleges Face a Loan Revolt by Thousands Claiming Trickery", ''New York Times'', May 3, 2015, http://mobile.nytimes.com/2015/05/04/education/for-profit-colleges-face-a-loan-strike-by-thousands-claiming-trickery.html.</ref>
==References== {{reflist|30em}}
==External links== * {{webarchive |url=https://web.archive.org/web/20150427170714/http://www.cci.edu/ |date=April 27, 2015 }}
Category:Corinthian Colleges Category:Education companies established in 1995 Category:Companies disestablished in 2015 Category:Companies formerly listed on the Nasdaq Category:Companies that filed for Chapter 11 bankruptcy in 2015 Category:American companies established in 1995 Category:2015 disestablishments in California Category:Former for-profit universities and colleges in the United States