Department of Education levies 30-million Fine on Corinthian Colleges

Department of Education levies 30-million Fine on Corinthian Colleges

On Tuesday, the US Department of Education has fined Santa Ana-based Corinthian Colleges Inc. $30-million. The DOE has alleged that for-profit college operator has enrolled students with increased job placement rates.

Already, Corinthian has been selling off and closing a number of its campuses across the country as asked by the Education Department. And, now this fine acts as another blow for Corinthian. It is been a long time now that the job placement rates for Corinthian graduates have been in spotlight.

Last year, the department stopped Corinthian's access to federal student aid after it was being said that the company has falsified the data. It shall be noted that the fine is currently applicable on one branch of Corinthian's operation - the Heald College system.

It operates 12 campuses in California, Hawaii and Oregon. There are chances that more penalties may be on the way for Corinthian's other campuses. A letter has been sent to Corinthian outlining the fine. In it, the Education Department has talk about widespread deception.

It is said that in some cases, Heald has paid temporary employment agencies to recruit graduates for short-term jobs, so that they could be considered as placements. In another instance, Heald considered business administration graduates to be successfully placed who worked in retail jobs at Safeway and Macy's.

"Instead of providing clear and accurate information to help students choose which college to attend, Corinthian violated students' and taxpayers' trust", affirmed US Under Secretary of Education Ted Mitchell.

A Corinthian spokesman, Joe Hixson, termed the department's conclusions as 'highly questionable' and 'unsubstantiated'. He also said that the company has been planning to appeal the decision.

Hixson affirmed that these actions would do nothing else, but would shatter the dreams and aspirations and careers of its employees.

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