Copyright© 2007 by School Services of California, Inc.

                                      Volume 20                   For Publication Date: August 3, 2007             No. 17

Vocational School Settles Suit 

After exaggerating its record of placing students in well-paying jobs, the Corinthian Colleges, one of the largest vocational school chains, has agreed to pay $6.5 million to settle a lawsuit alleging that the chain engaged in unlawful business practices. 

The complaint indicated that Corinthian students pay between $7,000 and $27,000 for vocational courses, which typically take from six months to one year to complete. Corinthian allegedly overstated the percentage of its students who obtained employment from these courses, inflated starting salary information, and used these misrepresentations to convince potential students to enroll. Students wound up paying tuition fees through a combination of government grants, taxpayer-subsidized loans, and private loans arranged by Corinthian. 

According to California Attorney General Jerry Brown, “Corinthian students fully expected that their tuition payments would result in the glowing job opportunities the company promised.  Unfortunately, their hopes were dashed as many of the students ended up unemployed and deep in debt. This groundbreaking settlement provides a measure of justice and fair restitution to these students. It also commits Corinthian to reforming its practices for the future.”   

The settlement was approved Tuesday by Los Angeles County Superior Court Judge Kenneth Freeman. Along with the lawsuit, the settlement provides for a total of $5.8 million in restitution to students, of which $1.5 million is for debt cancellation and $4.3 million is in the form of refunds to former students. The settlement also provides for a payment of $700,000 in civil penalties.   

According to the California Bureau of Postsecondary and Vocational Education, there are approximately 400,000 vocational school students in California. In 1989, the state established the agency to maintain oversight of vocational schools. The agency was established, in part, in response to a rising number questionable vocational schools and “diploma mills,” that are known for turning out graduates with little education and massive tuition debt. 

Students who believe they have been victimized by a vocational school can register a complaint by contacting the Public Inquiry Unit of the Attorney General’s Office at
1-800-952-5225. 

—Jamillah Moore, Ed.D.