Trouble Remains Following Failed for-Profit Schools' Revival

March 14, 2016
  • Industry News
  • for profit

When one of the country's largest for-profit college companies failed in 2014, the Education Department faced a choice. It could shut down Corinthian Colleges Inc., incurring a $1 billion loss to taxpayers and sending students scrambling, or it could find someone to take the school off its hands.

With a history of fraud discovered by auditors and investigators, and poor outcomes for students, the company drew only one interested buyer: a student loan debt collection firm that had formed a nonprofit educational company called Zenith Education Group.

A little over one year after Zenith took the helm, a review of the school's operations by The Associated Press shows that despite ostensibly new oversight by the Obama administration, the business model for what had been a failing chain of career training schools hasn't fundamentally changed.

Read more at ABC News: http://abcnews.go.com/Politics/wireStory/trouble-remains-failed-profit-schools-revival-37615793