Saturday, June 21, 2014
Not Good For Everest Students
From the Chicago Sun Times: Everest College, a national for-profit college with six Chicago-area locations, has had its federal funding temporarily halted until it cooperates with a federal investigation into its finances, U.S. Sen. Dick Durbin said Friday.
And that 21-day delay in federal money could put the college out of business, Everest’s parent company told its investors in an SEC filing, leaving thousands of students in limbo.
The U.S. Department of Education told Everest’s parent company, Corinthian Colleges, Inc., on Thursday that it was suspending Corinthian’s federal financial aid payment for three weeks because the school hasn’t responded to DOE questions about its marketing practices, Durbin said Friday.
That money typically is available 24 to 72 hours after Corinthian asks for it.
Durbin asked the department in December to investigate Corinthian’s alleged “misleading fraudulent practices related to job placement rates and marketing, including paying employers to hire their students on a short-term basis and then counting that number of hires as successful job placement.”
He added: “By inflating job placement rates, they could lure unsuspecting students into believing they were signing up for programs that were successful in getting jobs.”
Everest has 3,300 students at Illinois campuses in Skokie, Bedford Park, Burr Ridge, Merrionette Park, Melrose Park and North Aurora. Corinthian enrolls about 72,000 nationwide and takes in about $1.4 billion in federal student financial aid, which makes up more than 80 percent of its budget. http://www.suntimes.com/28197859-761/temporary-halt-in-federal-funds-could-doom-everest-college-school-tells-investors.html#.U6VumJnn-1s
I hope the Feds are not playing games and going after a for profit school just because they are for profit.
There is a Everest School just down the street from where I live and I have seen many Everest students come into the store I work at and it would be a horrible shame if they kicked out of school and lose their education and money.
But let's face it, many big colleges lie about their students getting jobs. How else can colleges recruit people majoring in art, philosophy, basket weaving, old languages, women and men studies, anything Dina Titus taught, and many more degrees that are not worth the paper they are written on.