Corinthian Colleges Used Recruiting Incentives, Documents Show

June 23, 2016
  • Industry News

Corinthian Colleges, once one of the nation’s largest for-profit education companies, engaged in apparently unlawful practices by paying its recruiters based on how many sales leads they converted into actual students, according to documents unsealed late last week.

The disclosure may make it easier for former students of the defunct institution to have their federal loans forgiven by helping them establish that they were defrauded or that Corinthian violated federal law while it was operating.

The materials, released by a three-judge panel in the United States Court of Appeals for the Ninth Circuit, are internal Corinthian documents known as "Ad Rep Performance Flash Reports." They were originally provided by two former employees who sued Corinthian and its auditor in 2007. Most of the documents the employees produced in the case — almost 800 pages — remain under seal.

Read more at The New York Times: http://www.nytimes.com/2016/06/23/business/corinthian-colleges-used-recruiting-incentives-documents-show.html