Baltimore Bankruptcy Lawyer: For Profit Colleges Duped Students
For profit colleges and their operators are under fire across the country with some announcing the closure of all their schools. One of the leading for profit college operators Corinthian Colleges, Inc. has filed for bankruptcy and shuttered all its schools.
It is insane to think that these institutions received billions in government funds in the form of student loans. The schools lured students through several nefarious tactics including inflated work placement rates and posting fake job ads to lure the unemployed who were then sold on the idea of additional education.
Another well known private company ITT Tech has had its leadership charged with Fraud by the Securities and Exchange Commission. ITT tech is featured on TV advertising frequently. Waiting breathlessly are the hundreds of thousands of students stuck with tens of thousands of dollars in student loans and degrees not worth the paper they are printed on. The government has discussed loan forgiveness for those impacted which is a great help, but cannot compensate these folks for the lost time and the fact they have to go back to school.
The Consumer Financial Protection Bureau has accused ITT TEch with predatory lending. In a scathing release, the CFPB stated that, ““ITT marketed itself as improving consumers’ lives but it was really just improving its bottom line,” said CFPB Director Richard Cordray. The reach of ITT extends to 40 states so nearly the whole country is impacted by this.
It is great that someone is finally paying attention to these institutions that went nearly unregulated for years and in the process have lured many a victim. The SEC and CFPB along with the department of education should everything they can to ensure students are not left saddled with debt from defunct institutions or worthless education.
Did you attend a Corinthian Colleges school? ITT Tech? How about other for profit schools? It is advised that you contact the CFPB and talk to a lawyer about your rights.