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Corinthian Colleges Fined $30 Million

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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.

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Activism

Alameda County Makes History: Board of Supervisors Unanimously Adopts Reparations Action Plan

The Final Action Plan addresses disparities in housing, economic opportunity, education, health, environmental justice, public safety, arts and culture, land use, and other areas where historical government policies have contributed to inequitable outcomes for Black residents.

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The Reparations Commission members and Alameda County Board of Supervisors celebrated the approval of its report on June 30. Present were (first row, l. to r.) Dee Johnson, Supervisor Elisa Marquez, Supervisor Lena Tam, Debra Gore, Artavia Berry, Supervisor Nikki Fortunato Bas, Jennifer Gayden, and Supervisor David Haubert; Second row (l. to r.) Supervisor Nate Miley, Larry McClendon, Brandon T. Sass, Phil Gardiner, Shadrick A. Small, and James Knowles. Photo by Ashley Sturgis, Supervisor’s Assistant from the Office of Supervisor Lena Tam.
The Reparations Commission members and Alameda County Board of Supervisors celebrated the approval of its report on June 30. Present were (first row, l. to r.) Dee Johnson, Supervisor Elisa Marquez, Supervisor Lena Tam, Debra Gore, Artavia Berry, Supervisor Nikki Fortunato Bas, Jennifer Gayden, and Supervisor David Haubert; Second row (l. to r.) Supervisor Nate Miley, Larry McClendon, Brandon T. Sass, Phil Gardiner, Shadrick A. Small, and James Knowles. Photo by Ashley Sturgis, Supervisor’s Assistant from the Office of Supervisor Lena Tam.

Landmark 5–0 Vote Advances One of the Nation’s Most Comprehensive County-Led Reparative Justice Efforts

Special to The Post

The Alameda County Board of Supervisors unanimously voted 5–0 on Tuesday to adopt the Final Action Plan of the Alameda County Reparations Commission, marking a historic milestone in the County’s commitment to advancing reparative justice for Black residents.

The vote follows nearly three years of work by the Alameda County Reparations Commission, which was seated in July 2023. Through extensive historical research, analysis of County data, public listening sessions, expert testimony, and community engagement, the Commission developed a comprehensive roadmap for addressing documented harms and expanding opportunity for future generations.

The Final Action Plan addresses disparities in housing, economic opportunity, education, health, environmental justice, public safety, arts and culture, land use, and other areas where historical government policies have contributed to inequitable outcomes for Black residents.

“This vote represents more than the adoption of a report,” said Debra Gore, Chair of the Alameda County Reparations Commission. “It is a commitment to truth, accountability, and action. Reparations are not about guilt or charity. They are about government’s responsibility to address documented harms created by its own policies and to build a more just future.”

During the Board meeting, Gore delivered a keynote address entitled “Redress as Constitutional First Principle,” presenting reparations as a constitutional principle rooted in the First Amendment’s guarantee of the right “to petition the Government for a redress of grievances.” Her remarks connected the nation’s founding ideals with Alameda County’s own data documenting continuing racial disparities.

At the conclusion of her address, Gore received a standing ovation from all five members of the Alameda County Board of Supervisors, recognizing both the Commission’s work and the significance of the Board’s action.

Grounded in County data and community testimony, the Commission’s recommendations reflect nearly three years of research and engagement with residents, historians, policy experts, advocates, and County staff. Together, they offer a roadmap for repairing documented harms while strengthening opportunity, accountability, and equity for future generations.

The Board’s action also includes a commitment to establish a standing committee to oversee implementation of the Action Plan, signaling that reparative justice will remain an ongoing County priority.

“History will remember this moment not because Alameda County acknowledged injustice,” Gore said. “History will remember that our County chose action. This vote demonstrates that government can confront difficult truths, listen to its residents, and take meaningful steps toward repair.”

Reached in an interview on July 1, Gore said she felt a sense of “joyfulness and reverence” for the ancestors and survivors of the harms of slavery through Jim Crow. “We might be the first in the country to pass an action plan with the commitment to ‘operationalize’ reparations.”

Gore is grateful to former Alameda County Supervisor Keith Carson, who asked her to serve on the commission, and current Supervisor Nate Miley, who asked her to be the chairperson.

Among the many who helped create and inspire the report, Gore pointed to former Oakland City Councilmember Leo Bazile, who has been calling for reparations since the 1960s, and the late Reparations Committee member Jesse Clyde Burleson, who provided insight on incarceration as an ongoing harm to the Black community. The report was dedicated to the memory of Burleson, who passed away on March 6 and who had been imprisoned from 1987-2018.

Gore also pointed to their avenue of approach on reparations, which was as much about the impact of slavery as it was about constitutional rights that had been systematically denied to Black people.

Members of the committee were: Cathy Adams, president and CEO of the Oakland African American Chamber of Commerce (OAAOCC) issued a statement supporting the reparations milestone.
OAACC “is grateful to former Supervisor Keith Carson, Supervisor Nate Miley, and the entire Alameda County Reparations Commission for their tireless efforts to develop a comprehensive action plan to address and repair the documented harms experienced by our local Black community,” Adams said.

“As an organization deeply committed to advancing workforce development, expanding access to capital, and creating opportunities for Black-owned businesses in Oakland and throughout Alameda County, we look forward to working alongside the steering committee to help deliver meaningful economic justice to those impacted by generations of systemic inequities.”

The Alameda County Reparations Commission extends its gratitude to the hundreds of residents who shared their experiences, the Commissioners who dedicated nearly three years of service, County staff, researchers, historians, and community partners whose work made this milestone possible.

With adoption of the Final Action Plan, Alameda County now begins the next phase of implementation in partnership with County leadership, community organizations, and residents. The commission will be dissolved, Gore says, and she looks forward to the next steps, one of which is the appointment of committee members.

Besides, Burleson, Gore and Bazile, members of the commission included: Natasha Triplett, Shenita Hurskin, Brandon T. Sass, Artavia Berry, Tiega N. Varlack, James Knowles, Vickie Stephens, Dr. Philip S. Gardiner, Dee Johnson, Larry McClendon (vice chair) , Carolyn (CJ) Johnson, Alan E. Dones, Jennifer A. Gayden, Lori Cox (vice chair), and Shadrick A. Small.

About the Alameda County Reparations Commission

Established by the Alameda County Board of Supervisors in July 2023, the Alameda County Reparations Commission was charged with examining the historical and ongoing harms experienced by Black residents resulting from government policies and practices and developing recommendations for repair. The Commission’s Final Action Plan provides a comprehensive framework for advancing equity, accountability, and opportunity throughout Alameda County.

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Activism

OPINION: Unfair Media Attacks on OUSD Leadership for Not Closing Schools

Dr. Denise Saddler is a respected educator who leads with integrity, honesty, and decades of experience in service to OUSD. Since stepping into the role of interim superintendent, she has worked tirelessly alongside the Senior Leadership Team and fiscal consultants to address one of the most difficult financial situations our district has faced.

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The school district has achieved ‘significant milestones that reflect disciplined leadership and a renewed commitment to fiscal responsibility,’ said Board President Jennifer Brouhard

By Jennifer Brouhard, Special to The Post

I am not going to directly respond to or amplify the personal attacks on the Oakland Unified School District’s dedicated leaders who are working every day on behalf of Oakland’s students.

Dr. Denise Saddler is a respected educator who leads with integrity, honesty, and decades of experience in service to OUSD. Since stepping into the role of interim superintendent, she has worked tirelessly alongside the Senior Leadership Team and fiscal consultants to address one of the most difficult financial situations our district has faced.

In December, the Board gave clear direction: bring forward a budget proposal that did not include a state loan and did not include school closures. Saddler and her team did exactly what the Board asked them to do.

There were differing opinions about how to address the district’s fiscal challenges. The two former employees referenced in a news article supported a different approach that included pursuing a state loan and exploring school closures. Those proposals were presented to the Board alongside Saddler’s proposal.

The Board adopted Saddler’s recommendation because it reflected the direction we had established. Since I joined the Board in 2023, the majority of the Board has consistently opposed school closures and has worked to preserve local control by avoiding a state loan whenever possible.

The public records cited in the article demonstrate the countless hours Saddler, the Senior Leadership Team, and our consultants devoted to developing a responsible financial plan. Difficult decisions were made, ideas were debated, and ultimately the Board selected the proposal that best aligned with our priorities.

As a result of that collaborative work, OUSD has adopted its first balanced budget in 22 years, achieved a qualified Second Interim Certification, and submitted a positive Third Interim Report.

These are significant milestones that reflect disciplined leadership and a renewed commitment to fiscal responsibility.

While there is still important work ahead, I believe the relationship between the Board, Dr. Saddler, and the Senior Leadership Team has become stronger and more collaborative throughout this process. We are moving in the right direction—with honesty, integrity, and a focus on the needs of OUSD’s 34,000 students.

Jennifer Brouhard, a retired OUSD teacher was elected in 2023 to represent District 2 and has been Board president since 2025.

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Activism

COMMENTARY: Wong Kim Ark Kept Dred Scott Dead

In 1857, the Supreme Court’s infamous Dred Scott decision declared that Black people — enslaved or free — could never be citizens of the United States.

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The cover of the “Full Opinions” from the Dred Scott Case. (The Smithsonian Institution). Public domain.
The cover of the “Full Opinions” from the Dred Scott Case. (The Smithsonian Institution). Public domain.

By Emil Amok Guillermo

Donald Trump tried to deport Wong Kim Ark.

But the President was 128 years too late.

On the final day of its term, days before America marks its 250th anniversary, the Supreme Court reminded us who gets to call themselves an American.

It’s not determined by blood.

It’s determined by birth on American soil.

The Supreme Court rejected Trump’s attempt to end birthright citizenship by executive order. In doing so, he reaffirmed what the Supreme Court had already settled in 1898 in United States v. Wong Kim Ark.

The Court didn’t invent a constitutional right.

It refused to erase one.

If your mother’s feet were on American soil when you were born, you’re an American citizen.

You can’t defeat the feet.

That’s my story as a Filipino American.

THE HISTORY WE KEEP FORGETTING

America has a habit of forgetting the people who save it.

We remember the Gold Rush.

We forget the Chinese who built the railroads.

We remember César Chávez.

We forget Larry Itliong.

And now, when politicians tried to rewrite the Constitution, they forgot the Chinese American born in San Francisco who had already answered their question more than a century ago.

His name was Wong Kim Ark.

If you’ve never heard of him, don’t feel bad.

Asian Americans have spent generations as America’s footnotes.

Unless we’re nurses.

Then we’re indispensable.

Unless we’re applying to elite colleges.

Then we’re the problem.

Let’s also be fair.

Not everyone who opposes birthright citizenship is motivated by prejudice. Many sincerely argue the Fourteenth Amendment was written only to guarantee citizenship to formerly enslaved Black Americans and not to the children of immigrants.

That’s a constitutional argument.

It just happens to be the one that lost.

In 1898.

And again this week.

DRED SCOTT IS WHY THIS MATTERS

Here’s the history too many Americans skip.

Why was the Fourteenth Amendment written?

In 1857, the Supreme Court’s infamous Dred Scott decision declared that Black people — enslaved or free — could never be citizens of the United States.

Never.

The Civil War ended slavery.

But it took the Fourteenth Amendment to bury Dred Scott.

The Citizenship Clause wasn’t a loophole.

It wasn’t an accident.

That’s the history the Supreme Court relied on.

The Fourteenth Amendment first secured the citizenship of formerly enslaved Black Americans.

Then Wong Kim Ark established that the same constitutional promise belongs to every child born on American soil, regardless of race or ancestry.

Black freedom and Asian American citizenship are joined by the same sentence in the Constitution.

Different communities.

One constitutional promise.

OUR HERO

Wong Kim Ark was born in San Francisco in 1873.

Not born pending ICE approval.

Born.

His parents were Chinese immigrants legally living in California but barred by racist laws from becoming citizens themselves.

As a Filipino American, this debate isn’t abstract.

My mother was still legally an alien when I was born.

Her immigration status didn’t matter.

Where her feet stood did.

America.

That’s what made me a citizen.

Not ancestry.

Not bloodline.

Not race.

The Constitution.

Emil Guillermo is an award-winning journalist, news analyst, and comic monologist. He appears at the Winnipeg Fringe Festival, July 16–26, at Ace Art Gallery. Subscribe to his micro-talk show at YouTube.com/@emilamok1.

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