Durbin, Madigan Call On Corinthian Colleges To Formerly Notify All Illinois Students Of Pending Federal And State Investigations And To Immediately Stop Enrolling Students

Note Corinthian failed for five months to provide data required by Department of Education

[WASHINGTON, D.C.] – U.S. Senator Dick Durbin (D-IL) and Illinois Attorney General Lisa Madigan today noted that Corinthian Colleges Inc. is under investigation by 20 states and the Consumer Financial Protection Bureau, the U.S. Department of Justice, and the Securities and Exchange Commission.  Corinthian operates in Illinois under the name “Everest College” and has six campuses in Burr Ridge, Bedford Park, Melrose Park, Merrionette Park, North Aurora, and Skokie, enrolling a total of 3,300 Illinois students.  The Department of Education reported yesterday that Corinthian failed to provide required data about its practices, including falsifying job placement data used in marketing claims to prospective students and allegations of altered grades and attendance.

“Corinthian stock dropped sharply on the news that, because of its failure to disclose requested data, the U.S. Department of Education is requiring Corinthian schools to wait 21 days – instead of only a day or two – after submitting enrollment information before they can access any federal Title IV funds,” said Durbin.  “It’s time to make the protection of Everest College students our highest priority. Corinthian should immediately stop enrolling students to prevent more students from being loaded with debt if the company fails because of fraudulent disclosures to the federal government.”


“My office has been investigating for-profit colleges for several years having received hundreds of complaints about questionable marketing and lending practices, including dubious claims of job placement rates and accreditation status,” said Attorney General Madigan. “I am encouraged by the Department of Education’s efforts to hold Corinthian Colleges accountable at the federal level as we continue to work in Illinois to protect students’ interests.”

In response to a December 16 investigation in the Huffington Post, Durbin sent a letter to the Secretary of Education, Arne Duncan, asking him to investigate Corinthian Colleges, Inc. and their manipulative marketing practices which included a subsidy program for employers to hire graduates temporarily and outright lying by the company through their advertisement of numbers substantially higher than actual job placement rates.  After that letter, the Department requested information from Corinthian related to their job placement rates, information they have yet to provide, and denied the company’s new program applications.  Durbin also called on the Accrediting Commission of Career Schools and Colleges – Corinthian Colleges, Inc.’s accreditor – to take action.

"For years I have been calling public attention to the growing scandal in the for-profit college industry. Their “accrediting commissions” are nothing more than in-house lap dogs; their tuitions are sky high; their diplomas are often worthless and they account for an incredible 46% of all student loan defaults, despite enrolling only 10% of the nation’s students,’ Durbin said, “The Corinthian canary has a bad cough and it’s time to start protecting unsuspecting students from the tragic consequences of a potential failure of this enterprise.”


Durbin’s December 18 letter to Duncan can be found HERE along with similar letters he sent to the Chairman and CEO of Corinthian Colleges, Inc., Jack Massimino, the Accrediting Commission of Career Schools and Colleges, and the Accrediting Council for Independent Colleges and Schools.