Op-Ed
Corinthian Colleges Fined $30 Million
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.
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Activism
Juneteenth: Celebrating Our History, Honoring Our Shared Spaces
It’s been empowering to watch Juneteenth blossom into a widely celebrated holiday, filled with vibrant outdoor events like cookouts, festivals, parades, and more. It’s inspiring to see the community embrace our history—showing up in droves to celebrate freedom, a freedom delayed for some enslaved Americans more than two years after the Emancipation Proclamation was signed.

By Wayne Wilson, Public Affairs Campaign Manager, Caltrans
Juneteenth marks an important moment in our shared history—a time to reflect on the legacy of our ancestors who, even in the face of injustice, chose freedom, unity, and community over fear, anger, and hopelessness. We honor their resilience and the paths they paved so future generations can continue to walk with pride.
It’s been empowering to watch Juneteenth blossom into a widely celebrated holiday, filled with vibrant outdoor events like cookouts, festivals, parades, and more. It’s inspiring to see the community embrace our history—showing up in droves to celebrate freedom, a freedom delayed for some enslaved Americans more than two years after the Emancipation Proclamation was signed.
As we head into the weekend full of festivities and summer celebrations, I want to offer a friendly reminder about who is not invited to the cookout: litter.
At Clean California, we believe the places where we gather—parks, parade routes, street corners, and church lots—should reflect the pride and beauty of the people who fill them. Our mission is to restore and beautify public spaces, transforming areas impacted by trash and neglect into spaces that reflect the strength and spirit of the communities who use them.
Too often, after the music fades and the grills cool, our public spaces are left littered with trash. Just as our ancestors took pride in their communities, we honor their legacy when we clean up after ourselves, teach our children to do the same, and care for our shared spaces.
Small acts can inspire big change. Since 2021, Clean California and its partners have collected and removed over 2.9 million cubic yards of litter. We did this by partnering with local nonprofits and community organizations to organize grassroots cleanup events and beautification projects across California.
Now, we invite all California communities to continue the incredible momentum and take the pledge toward building a cleaner community through our Clean California Community Designation Program. This recognizes cities and neighborhoods committed to long-term cleanliness and civic pride.
This Juneteenth, let’s not only celebrate our history—but also contribute to its legacy. By picking up after ourselves and by leaving no litter behind after celebrations, we have an opportunity to honor our past and shape a cleaner, safer, more vibrant future.
Visit CleanCA.com to learn more about Clean California.
Activism
OPINION: California’s Legislature Has the Wrong Prescription for the Affordability Crisis — Gov. Newsom’s Plan Hits the Mark
Last month, Gov. Newsom included measures in his budget that would encourage greater transparency, accountability, and affordability across the prescription drug supply chain. His plan would deliver real relief to struggling Californians. It would also help expose the hidden markups and practices by big drug companies that push the prices of prescription drugs higher and higher. The legislature should follow the Governor’s lead and embrace sensible, fair regulations that will not raise the cost of medications.

By Rev. Dr. Lawrence E. VanHook
As a pastor and East Bay resident, I see firsthand how my community struggles with the rising cost of everyday living. A fellow pastor in Oakland recently told me he cuts his pills in half to make them last longer because of the crushing costs of drugs.
Meanwhile, community members are contending with skyrocketing grocery prices and a lack of affordable healthcare options, while businesses are being forced to close their doors.
Our community is hurting. Things have to change.
The most pressing issue that demands our leaders’ attention is rising healthcare costs, and particularly the rising cost of medications. Annual prescription drug costs in California have spiked by nearly 50% since 2018, from $9.1 billion to $13.6 billion.
Last month, Gov. Newsom included measures in his budget that would encourage greater transparency, accountability, and affordability across the prescription drug supply chain. His plan would deliver real relief to struggling Californians. It would also help expose the hidden markups and practices by big drug companies that push the prices of prescription drugs higher and higher. The legislature should follow the Governor’s lead and embrace sensible, fair regulations that will not raise the cost of medications.
Some lawmakers, however, have advanced legislation that would drive up healthcare costs and set communities like mine back further.
I’m particularly concerned with Senate Bill (SB) 41, sponsored by Sen. Scott Wiener (D-San Francisco), a carbon copy of a 2024 bill that I strongly opposed and Gov. Newsom rightly vetoed. This bill would impose significant healthcare costs on patients, small businesses, and working families, while allowing big drug companies to increase their profits.
SB 41 would impose a new $10.05 pharmacy fee for every prescription filled in California. This new fee, which would apply to millions of Californians, is roughly five times higher than the current average of $2.
For example, a Bay Area family with five monthly prescriptions would be forced to shoulder about $500 more in annual health costs. If a small business covers 25 employees, each with four prescription fills per month (the national average), that would add nearly $10,000 per year in health care costs.
This bill would also restrict how health plan sponsors — like employers, unions, state plans, Medicare, and Medicaid — partner with pharmacy benefit managers (PBMs) to negotiate against big drug companies and deliver the lowest possible costs for employees and members. By mandating a flat fee for pharmacy benefit services, this misguided legislation would undercut your health plan’s ability to drive down costs while handing more profits to pharmaceutical manufacturers.
This bill would also endanger patients by eliminating safety requirements for pharmacies that dispense complex and costly specialty medications. Additionally, it would restrict home delivery for prescriptions, a convenient and affordable service that many families rely on.
Instead of repeating the same tired plan laid out in the big pharma-backed playbook, lawmakers should embrace Newsom’s transparency-first approach and prioritize our communities.
Let’s urge our state legislators to reject policies like SB 41 that would make a difficult situation even worse for communities like ours.
About the Author
Rev. Dr. VanHook is the founder and pastor of The Community Church in Oakland and the founder of The Charis House, a re-entry facility for men recovering from alcohol and drug abuse.
Alameda County
Council Approves Budget to Invest in Core City Services, Save Fire Stations, Invest in Economic Development
I am most proud of our ability to fund these critical city services without the use of one-time fixes. We are still suffering the consequences of last year’s budget, where a majority of the Council, myself not included, chose to incorporate anticipated proceeds from the sale of the Coliseum to fund essential services. Since the sale has still not yet been completed, the lack of funds led to drastic cuts in city services, including the temporary closure of fire stations, staff layoffs, and the cancellations of many service contracts.

By Janani Ramachandran, District 4 Oakland City Councilmember
On Wednesday, June 11, City Council took a bold step to prioritize investing in essential city services to get our beautiful Town back on track. As Chair of the Finance Committee, I am proud to have led a collaborative process, alongside Councilmembers Rowena Brown, Zac Unger, and Charlene Wang, to develop a set of amendments to the proposed FY 2025-2027 budget which passed successfully with a vote of 6 – 1. Despite facing a $265 million structural budget deficit, we were able to restore funding to ensure that all 25 fire stations remain open, fund 5 police academies, invest millions of dollars to combat illegal dumping and sideshow prevention, improve our permitting processes, fund a “business incentives” program to revitalize our commercial corridors, improve upon our homelessness prevention work, amplify the city’s anti-trafficking programs, re-instate our tree services division, staff up our Auditor’s office – all while preventing any layoffs of city staff, keeping our senior centers and after-school programs open, and crisis services like MACRO funded.
I am most proud of our ability to fund these critical city services without the use of one-time fixes. We are still suffering the consequences of last year’s budget, where a majority of the Council, myself not included, chose to incorporate anticipated proceeds from the sale of the Coliseum to fund essential services. Since the sale has still not yet been completed, the lack of funds led to drastic cuts in city services, including the temporary closure of fire stations, staff layoffs, and the cancellations of many service contracts. The budget that we passed this week proudly does not fund recurring expenses with anticipated one-time revenue – and moves our city towards being fiscally responsible with our taxpayers’ funds.
Our budget comes in response to the widespread and consistent calls from across Oakland’s diverse communities asking us to prioritize funding solutions to the issues that have most directly impacted our residents’ safety and quality of life. Our priorities are also inspired by our belief that Oakland is on the way not only to financial recovery, but also to global recognition. Oakland can attract and preserve businesses of all sizes with safer, cleaner streets. We can and will have more large-scale festivals that celebrate our culture, concerts that uplift our incredible local musicians, conferences that attract patrons from across the world, and award-winning restaurants that top national charts. We are on our way to rebuilding a thriving economy and having a cultural renaissance will create more jobs for Oaklanders while also generating more revenue for the City through sales and business taxes.
I am grateful for the close partnership with our new Mayor Barbara Lee, and know that she shares our values of ensuring we are prioritizing keeping Oakland’s residents safe, our streets clean, and our businesses prosperous in an open and fiscally responsible manner. I am also thankful to our City Administrator, Jestin Johnson, and former Interim Mayor Kevin Jenkins’ efforts to produce the initial proposal that our Council budget team used as a starting point for our amendments, and for their shared commitment to transparency and ethical government. I am especially grateful for every resident that took the time to make their voice heard throughout this rigorous budget process. I have no doubt that we are on the verge of true change, and that together we will bring Oakland back to being the world-class city I know it can be.
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