Connect with us

Op-Ed

Corinthian Colleges Fined $30 Million

Published

on

Charlene-Crowell14

By Charlene Crowell
NNPA Columnist

 

Financially-troubled Corinthian Colleges, once one of the nation’s largest for-profit colleges, has a new financial hurdle: a $30 million fine.

An April 14 order by the U.S. Department of Education followed its finding 947 documented incidents of misrepresentations on job placement rates made to both current and former students. Enrollment at Corinthian’s California Heald College is banned and will also lose participation in the Title IV federal student aid programs at campuses in Salinas and Stockton. Current students must either be helped to complete their education or continue it elsewhere.

At the heart of the department’s actions, related and continuing litigation and other activism is a basic public policy question: Should students repay billions of dollars in federal student loans for an education that failed to provide what it promised?

Education Secretary Arne Duncan doesn’t think so.

“This should be a wake-up call for consumers across the country about the abuses that can exist within the for-profit college sector,” he said. “We will continue to hold the career college industry accountable and demand reform for the good of students and taxpayers. This is unacceptable, and we are holding them accountable.”

Other Heald College job placement practices that concerned the Department of Education included:

• Failing to disclose that it counted graduates whose employment either began before enrollment at Heald or preceded their graduation as job ‘placement;’
• Counting job placements that were outside of the study’s field of study as an in-field placement; and
• Paying temporary agencies to hire its graduates to work at temporary jobs on its own campuses.

The department’s actions came on the heels of mounting concerns from former students and elected officials sustained over several months.

On April 9, in a joint appeal to Secretary Duncan, nine state attorneys general called for the department to “relieve borrowers of the obligation to repay federal student loans that were incurred as a result of violations of state law by Corinthian Colleges, Inc.” State attorneys general signing the letter represented California, Illinois, Kentucky, Massachusetts, New Mexico, New York, Oregon and Washington state.

“Through their predatory practices, these unscrupulous for-profit schools have co-opted a public loan program intended to increase access to higher education and left hundreds of thousands of students in financial ruin. Students and families should not be left to bear the costs,” wrote the state officials.

Days earlier, before the attorneys general’s correspondence, a delegation of indebted former students, known as the Corinthian 100, met with the Department of Education to explain why they were withholding payments of their student loans and further asked for the department’s support. Organized by the Debt Collective, an advocacy group, the students wanted to know why the education officials would allow Corinthian College access to federal student aid while the school was under investigation for fraudulent practices and activities.

In February, the Consumer Financial Protection Bureau (CFPB) secured private loan forgiveness of $480 million for current and former Corinthian students enrolled at one of 52 campuses in 17 states. These terms were an important condition to CFPB agreeing to allow the sale of these campuses to Zenith Education, a subsidiary of Educational Credit Management Corporation (ECMC), and long-time federal loan guarantor.

According to CFPB, Corinthian deliberately raised prices on tuition in order to create a “funding gap” beyond federal grants and loans that students were pressed to close with private loans. Corinthian needed the additional private revenue because of a federal law limiting for-profit schools from receiving no more than 90 percent of their income from federal sources.

And in December 2014, 13 U.S. Senators signed a letter to Secretary Duncan that expressed shared concerns about Corinthian students’ federal student loan debts.

“If colleges fail to hold up their end of the bargain – if they break the law in ways that bear on their students’ educational experience or finances – students should not literally be stuck by paying the price,” wrote Senators from California, Connecticut, Hawaii, Illinois, Massachusetts, Minnesota, Oregon, Rhode Island, and Wisconsin.

For several years Corinthian Colleges were among the nation’s largest for-profit schools, operating under several brands — WyoTech, Heald College and Everest College. After maximizing its reliance on federal loans and Pell Grants, Corinthian’s private student loans, with higher interest rates than federal ones were used to fill funding gaps.

Corinthian’s private “Genesis” loans, unlike other student loans, required repayment to begin while students were enrolled in classes.

Last fall the Center for Responsible Lending (CRL) released research that found how high-cost, for-profit colleges make millions each year by targeting students of color. Although for-profit colleges actually enroll only 13 percent of all college students, they account for nearly half of all student loan defaults.

“For profit colleges have positioned themselves as a means for traditionally underserved students of color to achieve educational success and thus to increase their ability to earn higher incomes, and build wealth,” states the report. “If these schools do not engender better outcomes for their students and instead merely saddle students with debt, then the access these schools provide could prove to widen existing income and wealth gaps, rather than to narrow them.”

 

Charlene Crowell is a communications manager with the Center for Responsible Lending. She can be reached at Charlene.crowell@responsiblelending.org.

###

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

#NNPA BlackPress

COMMENTARY: The National Protest Must Be Accompanied with Our Votes

Just as Trump is gathering election data like having the FBI take all the election data in Georgia from the 2020 election, so must we organize in preparation for the coming primary season to have the right people on ballots in each Republican district, so that we can regain control of the House of Representatives and by doing so, restore the separation of powers and balance that our democracy is being deprived of.

Published

on

Dr. John E. Warren Publisher, San Diego Voice & Viewpoint
Dr. John E. Warren, Publisher San Diego Voice & Viewpoint Newspaper. File photo..

By  Dr. John E. Warren, Publisher San Diego Voice & Viewpoint Newspaper

As thousands of Americans march every week in cities across this great nation, it must be remembered that the protest without the vote is of no concern to Donald Trump and his administration.

In every city, there is a personal connection to the U.S. Congress. In too many cases, the member of Congress representing the people of that city and the congressional district in which it sits, is a Republican. It is the Republicans who are giving silent support to the destructive actions of those persons like the U.S. Attorney General, the Director of Homeland Security, and the National Intelligence Director, who are carrying out the revenge campaign of the President rather than upholding the oath of office each of them took “to Defend The Constitution of the United States.”

Just as Trump is gathering election data like having the FBI take all the election data in Georgia from the 2020 election, so must we organize in preparation for the coming primary season to have the right people on ballots in each Republican district, so that we can regain control of the House of Representatives and by doing so, restore the separation of powers and balance that our democracy is being deprived of.

In California, the primary comes in June 2026. The congressional races must be a priority just as much as the local election of people has been so important in keeping ICE from acquiring facilities to build more prisons around the country.

“We the People” are winning this battle, even though it might not look like it. Each of us must get involved now, right where we are.

In this Black History month, it is important to remember that all we have accomplished in this nation has been “in spite of” and not “because of.” Frederick Douglas said, “Power concedes nothing without a struggle.”

Today, the struggle is to maintain our very institutions and history. Our strength in this struggle rests in our “collectiveness.” Our newspapers and journalists are at the greatest risk. We must not personally add to the attack by ignoring those who have been our very foundation, our Black press.

Are you spending your dollars this Black History Month with those who salute and honor contributions by supporting those who tell our stories? Remember that silence is the same as consent and support for the opposition. Where do you stand and where will your dollars go?

Continue Reading

Activism

Post Newspaper Invites NNPA to Join Nationwide Probate Reform Initiative

The Post’s Probate Reform Group meets the first Thursday of every month via Zoom and invites the public to attend.  The Post is making the initiative national and will submit information from its monthly meeting to the NNPA to educate, advocate, and inform its readers.

Published

on

iStock.
iStock.

By Tanya Dennis

The National Newspaper Publishers Association (NNPA) represents the Black press with over 200 newspapers nationwide.

Last night the Post announced that it is actively recruiting the Black press to inform the public that there is a probate “five-alarm fire” occurring in Black communities and invited every Black newspaper starting from the Birmingham Times in Alabama to the Milwaukee Times Weekly in Wisconsin, to join the Post in our “Year of Action” for probate reform.

The Post’s Probate Reform Group meets the first Thursday of every month via Zoom and invites the public to attend.  The Post is making the initiative national and will submit information from its monthly meeting to the NNPA to educate, advocate, and inform its readers.

Reporter Tanya Dennis says, “The adage that ‘When America catches a cold, Black folks catch the flu” is too true in practice; that’s why we’re engaging the Black Press to not only warn, but educate the Black community regarding the criminal actions we see in probate court: Thousands are losing generational wealth to strangers. It’s a travesty that happens daily.”

Venus Gist, a co-host of the reform group, states, “ Unfortunately, people are their own worst enemy when it comes to speaking with loved ones regarding their demise. It’s an uncomfortable subject that most avoid, but they do so at their peril. The courts rely on dissention between family members, so I encourage not only a will and trust [be created] but also videotape the reading of your documents so you can show you’re of sound mind.”

In better times, drafting a will was enough; then a trust was an added requirement to ‘iron-clad’ documents and to assure easy transference of wealth.

No longer.

As the courts became underfunded in the last 20 years, predatory behavior emerged to the extent that criminality is now occurring at alarming rates with no oversight, with courts isolating the conserved, and, I’ve  heard, many times killing conservatees for profit. Plundering the assets of estates until beneficiaries are penniless is also common.”

Post Newspaper Publisher Paul Cobb says, “The simple solution is to avoid probate at all costs.  If beneficiaries can’t agree, hire a private mediator and attorney to work things out.  The moment you walk into court, you are vulnerable to the whims of the court.  Your will and trust mean nothing.”

Zakiya Jendayi, a co-host of the Probate Reform Group and a victim herself, says, “In my case, the will and trust were clear that I am the beneficiary of the estate, but the opposing attorney said I used undue influence to make myself beneficiary. He said that without proof, and the judge upheld the attorney’s baseless assertion.  In court, the will and trust is easily discounted.”

The Black press reaches out to 47 million Black Americans with one voice.  The power of the press has never been so important as it is now in this national movement to save Black generational wealth from predatory attorneys, guardians and judges.

The next probate reform meeting is on March 5, from 7 – 9 p.m. PST.  Zoom Details:
Meeting ID: 825 0367 1750
Passcode: 475480

All are welcome.

Continue Reading

Activism

COMMENTARY: The Biases We Don’t See — Preventing AI-Driven Inequality in Health Care

For decades, medicine promoted false assumptions about Black bodies. Black patients were told they had lower lung capacity, and medical devices adjusted their results accordingly. That practice was not broadly reversed until 2021. Up until 2022, a common medical formula used to measure how well a person’s kidneys were working automatically gave Black patients a higher score simply because they were Black. On paper, this made their kidneys appear healthier than they truly were. As a result, kidney disease was sometimes detected later in Black patients, delaying critical treatment and referrals.

Published

on

Sen. Akilah Weber Pierson, M.D (D-San Diego). File photo. Sen. Akilah Weber Pierson, M.D (D-San Diego). File photo.
Sen. Akilah Weber Pierson, M.D (D-San Diego). File photo.

By Sen. Akilah Weber Pierson, M.D., Special to California Black Media Partners 

Technology is sold to us as neutral, objective, and free of human flaws. We are told that computers remove emotion, bias, and error from decision-making. But for many Black families, lived experience tells a different story. When technology is trained on biased systems, it reflects those same biases and silently carries them forward.

We have seen this happen across multiple industries. Facial recognition software has misidentified Black faces at far higher rates than White faces, leading to wrongful police encounters and arrests. Automated hiring systems have filtered out applicants with traditionally Black names because past hiring data reflected discriminatory patterns. Financial algorithms have denied loans or offered worse terms to Black borrowers based on zip codes and historical inequities, rather than individual creditworthiness. These systems did not become biased on their own. They were trained on biased data.

Healthcare is not immune.

For decades, medicine promoted false assumptions about Black bodies. Black patients were told they had lower lung capacity, and medical devices adjusted their results accordingly. That practice was not broadly reversed until 2021. Up until 2022, a common medical formula used to measure how well a person’s kidneys were working automatically gave Black patients a higher score simply because they were Black. On paper, this made their kidneys appear healthier than they truly were. As a result, kidney disease was sometimes detected later in Black patients, delaying critical treatment and referrals.

These biases were not limited to software or medical devices. Dangerous myths persisted that Black people feel less pain, contributing to undertreatment and delayed care. These beliefs were embedded in modern training and practice, not distant history. Those assumptions shaped the data that now feeds medical technology. When biased clinical practices form the basis of algorithms, the risk is not hypothetical. The bias can be learned, automated, and scaled.

For us in the Black community, this creates understandable fear and mistrust. Many families already carry generational memories of medical discrimination, from higher maternal mortality to lower life expectancy to being dismissed or unheard in clinical settings. Adding AI biases could make our community even more apprehensive about the healthcare system.

As a physician, I know how much trust patients place in the healthcare system during their most vulnerable moments. As a Black woman, I understand how bias can shape experiences in ways that are often invisible to those who do not live them. As a mother of two Black children, I think constantly about the systems that will shape their health and well-being. As a legislator, I believe it is our responsibility to confront emerging risks before they become widespread harm.

That is why I am the author of Senate Bill (SB) 503. This bill aims to regulate the use of artificial intelligence in healthcare by requiring developers and users of AI systems to identify, mitigate, and monitor biased impacts in their outputs to reduce racial and other disparities in clinical decision-making and patient care.

Currently under consideration in the State Assembly, SB 503 was not written to slow innovation. In fact, I encourage it. But it is our duty must ensure that every tool we in the healthcare field helps patients rather than harms them.

The health of our families depends on it.

About the Author 

Sen. Akilah Weber Pierson (D–San Diego) is a physician and public health advocate representing California’s 39th Senate District.

Continue Reading

Subscribe to receive news and updates from the Oakland Post

* indicates required

CHECK OUT THE LATEST ISSUE OF THE OAKLAND POST

ADVERTISEMENT

WORK FROM HOME

Home-based business with potential monthly income of $10K+ per month. A proven training system and website provided to maximize business effectiveness. Perfect job to earn side and primary income. Contact Lynne for more details: Lynne4npusa@gmail.com 800-334-0540

Facebook

Trending

Copyright ©2021 Post News Group, Inc. All Rights Reserved.