Wednesday, May 13, 2015

Corinthian Colleges and regulatory neglect - Ben Miller, Press Democrat

For years, private for-profit colleges were Wall Street darlings. Robust margins and a business model that does best when the economy does worst enabled these companies to add hundreds of thousands of students, all funded by billions of dollars in federal subsidies. What skyrocketed upward is now coming down, and the landing is not pretty. Corinthian Colleges, which a year ago had more than 72,000 students under the Everest, Heald and WyoTech brands, slowly collapsed over the past 10 months before announcing last Sunday that it would close its final 28 campuses. The move leaves 16,000 students scrambling to sort out their educational futures.

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