The Consumer Financial Protection Bureau is suing Corinthian Colleges, one of the largest operators of for-profit colleges in the U.S., claiming that it deceived students and harassed them to collect on student loan debts.
The CFPB alleges that the school used false promises of employment prospects to lure students, induced them to take out predatory loans, and publicly humiliated them when they couldn’t pay.
According to internal documents obtained by the government agency, Corinthian Colleges targeted students with “’low self-esteem’ who had ‘[f]ew people in their lives who care about them’ and who are ‘isolated,’ ‘stuck, unable to see and plan well for future’” according to internal company documents obtained by CFPB.
“Corinthian has turned the American dream of higher education into an ongoing nightmare of debt and despair,” said CFPB Director Richard Cordray in a statement.
A Corinthian spokesman said in a statement that the company strongly disputed the CFPB’s allegations.
Also this week: Stressed-out MBAs turn to meditation; HBS alums say they worry about poverty but create apps for the wealth; and Syracuse University channels Harry Potter to motivate business students.