The news about the College sudden closure reached students in various forms including emails, word of mouth, text messages and recorded calls from Corinthian. Julio Colis is another student who reacted to the decision expressing his disappointment for the closure due to the huge debts that he had already accumulated while pursuing her medical assistants’ course. He said, “I’m worried about the debt we have, like what we would have to pay on it,” he said. “I had talked to one of the counselors before about getting a bad feeling about this place and she said, ‘Don’t worry.”
The root cause leading to Corinthian Everest College has been attributed to high levels of student loans. The matter has been under investigation and there have been a number of claims that the college has been involved in fraudulent marketing and misappropriation of federal student loans.
A summary of Corinthian’s Everest College Median federal loan debt in Southern California shows that a dental assistant program goes for $9,000 and criminal justice degree goes for $28,000. Therefore, this indicated that a student spends an average of $20, 000- $25,000 federal loan per year in Southern California.
Federal Student Aid Access Restricted by U.S. Department of Education
A major drawback to Corinthian came after the U.S. Department of education made a ruling to restrict it access to federal student aid which comprises more than 85% of its total revenue. The move was made after the Department realized that the for-profit school has been misquoting the rates of graduate’s placement after which the school officials declined to issue a statement concerning the matter.
In adequate funding has held the Corinthian survival at stake and it was forced to sell out 85 campuses and some of its online programs in June last year. The recent shut down announcement of the remaining satellite colleges has come as a shock to students and they have been left with no other choice other than looking for alternatives. The school promised to refund the federal student loans or transfer the credit to their preferred new schools. Erika Adame, 19, who hails from South Los Angeles is a student at Everest College said that he is ready to start it all afresh.
Students Reaction to Everest College Shut Down
Different students had mixed reactions about their experience at Everest College. Some said they had been frustrated by the coursework as it conflicted with other teacher’s lectures. Lisa De Santos who is 39 however had a positive experience at Everest College and she had this to say; “I never had a problem,” she said. “We had a lot of support. I’m going to miss this place.”
Most of the former students in this college held a discussion with the Sen. Dick Durbin, the Illinois attorney general Lisa Madigan together with other officials from U.S Department of Education. The main reason of this meeting was to discuss various students’ experience about their federal loans. Measures has been put in place to ensure that the affected students are offset their federal loans.
Most for-profit schools are of great concerns and research has proved that 40% of the total student loan defaults actually come from for profit colleges. Similar sentiments were shared by Madigan who said; “Fraud at the beginning, fraud in the middle and fraud and the end and the only thing these students are left with is $7,000 to $8,000 of debt to nearly 200,000 dollars of debt that is crippling you and the overall economy.”
The struggle of former students in Corinthian Colleges of having their loans forgiven has seen the light of the day and the government through the Department of Education has called off students loans up to a tune of $100 million. Measures are also underway to approve the second phase of Corinthian loan forgiveness totaling to $28 million which is expected to provide a relief for 1,300 students. The other group that is set to see it loans discharged up to the tune of $75 million comprises of 5,800 former students who had applied for a “closed school” claims.
Campus such as Vancouver and Portland were also set to be closed and the official statement from the college said that they have already established plans to consolidate it programs at nonprofit group at Tigard and Ore campus. Vancouver College is estimated to have been serving more than one hundred students and they are set to begin their transition on January up to April so as to be absorbed fully into the Zenith Education program.
Speaking about the decision, college officials said that; “To reach this decision, Zenith weighed a number of factors including trends in student population, program completion and job placement rates.”
The move to close Portland campus is set to affect about 80 students. Negotiations are currently underway with other campus in Puget Sound Area that will see merging of smaller campuses in Everest a move that is likely to affect more students.
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