Good afternoon
To help ensure accurate media coverage, CCi has created a document for reporters and editors that addresses a number of details regarding its operations, its performance, and its operating agreement with the Department of Education (ED). The document is attached for your information.
Thanks,
The Online Team
Corinthian Colleges Inc.
Fact vs. Fiction
July 20, 2014
To: Reporters and Editors Providing News Coverage on Corinthian Colleges
From: Corinthian Colleges Inc.
Date: July 20, 2014
Subject: Correcting the Record on Corinthian
To help ensure accurate reporting, below the Company addresses a number of details regarding
the Company, its operations, its performance, and its operating agreement with the
Department of Education (ED).
Fiction: The Company was slow to begin responding to ED’s request for documents.
Fact: Immediately after January 23, 2014 when the Department of Education asked CCi to
produce hundreds of thousands of pages of documents dating back four years, the Company
began extensive efforts to comply with this request.
Fiction: The Company should have been able to readily comply with the request for documents.
Fact: The Department asked for a wide range of material on 175,000 graduates in some
instances going back to 2008 related to attendance, grades and job placement results. At the
beginning of document production, the Company devoted at least 10 full‐time employees to
the project. By April, the Company had increased that number to 29 employees.
Fiction: ED imposed a 21‐day hold on reimbursing federal education funds to CCi schools
because the company failed to produce any of the requested documents despite multiple
requests.
Fact: By June 12, when the Department imposed its 21‐day hold, the Company had produced all
requested records related to grades and attendance, hundreds of spreadsheets detailing its
calculations for job placement rates published since 2010 as well as job placement records for
20 of its 107 campuses for one year.
Fiction: CCi has done nothing to accelerate the document production process.
Fact: Since mid‐June, the Company has assigned 200 employees – 100 of whom are full‐time,
working seven days a week – to complete work on the Department’s document request.
Fiction: CCi has admitted to falsifying placement data and/or grades and attendance.
Fact: In a February 12 letter, the Company respectfully but firmly challenged ED’s
characterization that “CCi had admitted to falsifying placement rates and/or grade and
attendance records at various institutions.” The Company stands by that statement.
ED’s characterization stems from isolated instances over a four‐year period when the Company
itself detected false or erroneous information through its own compliance review efforts and
then (1) took immediate action to discipline or dismiss the employees involved, and (2)
reported the findings to ED and other regulatory bodies. The Company found the problems,
self‐reported them and fixed them.
Fiction: CCi has inadequate internal controls.
Fact: The Company’s track record of identifying and reporting issues demonstrate the strength
of its internal compliance programs and its commitment to compliance and transparency. The
Company invests approximately $26 million per year in compliance programs.
Fiction: ED unilaterally imposed a monitor to investigate the Company.
Fact: Corinthian suggested the appointment of a monitor during discussions related to a
memorandum of understanding with ED, with the goal of enhancing communications between
ED and the Company. We also agreed to pay for the monitor’s services. We welcome Mr.
Fitzgerald and his team. They will have the complete cooperation of the Company. We look
forward to providing full access to the data and personnel necessary to demonstrate CCi’s
commitment to student success and regulatory compliance.
Fiction: ED is targeting CCi because it provides inferior education.
Fact: Clear, objective evidence shows that CCi schools offer students a quality education and
the professional skills to begin a successful career. According to the most recent U.S.
Department of Education statistics, CCi’s schools have an overall graduation rate of 61 percent.
By comparison, traditional community colleges have a nationwide graduation rate of less than
20 percent.
Fiction: CCi has a poor track record with student job placement.
Fact: In 2013, more than two out of three graduates of CCi schools available for placement – 69
percent – found jobs in their fields of study within six months of graduation. Traditional
community colleges nationwide do not even track these job placement rates.
Fiction: CCi does not adequately assist its graduates in finding jobs.
Fact: As of June 30, 2013, Corinthian’s Career Services department had more than 750
employees who were devoted to helping graduates find employment. The Company is unaware
of any traditional college or university that matches this significant commitment of people and
resources.
Unlike traditional community colleges, which are local institutions, CCi has national
partnerships with many large businesses, enabling the Company to better understand the skills
they are looking for in potential employees. Year after year, major national employers such as
CVS/pharmacy, Bridgestone Tire and Pep Boys hire dozens of CCi graduates because they find
them to be well prepared for the workplace.
Fiction: CCi students are forced into substantial debt and most will default on these loans.
Fact: Although a college education requires a significant financial commitment from every
student, CCi’s schools do not overload graduates with debt. According to the most recent U.S.
Department of Education statistics, CCi’s most recent three‐year, companywide cohort default
rate is 19.0 percent, a significant decline from the previous year, and well below the federallymandated
threshold of 30%. By contrast, the most recent three‐year cohort default rate for
community colleges nationwide is about 21.0 percent.
Fiction: CCi relies on deceptive sales practices or otherwise coerces students to attend.
Fact: Students make a careful, informed decision to attend CCi schools based on their personal
experience in the education system and their knowledge of what works best for them.
According to CCi’s twice‐yearly student surveys, about 40 percent of CCi students have
tried a traditional community college before enrolling in one of CCi’s schools.
Our students tell us that CCi’s schools’ educational approach is better suited to meet the
needs of non‐traditional students than traditional community colleges.
Fiction: CCi specifically targets low‐income students.
Fact: Like many other career colleges, CCi has more students who are low income, minority and
the first in their families to attend college. To meet the needs of this student population, CCi’s
schools offer flexible schedules, small classes, intensive individual support and a practical,
workplace‐oriented instructional style that works well for these students.
Fiction: Our students’ education will be interrupted by the ongoing issues with the ED.
Fact: Corinthian owns 97 campuses in the U.S. Under CCi’s agreement with the Department of
Education, the Company will put 85 of these campuses up for sale. The Company is gradually
winding down operations – or “teaching out” – another 12 U.S. campuses. The agreement
allows all current students to complete their educational programs. It minimizes disruption and
establishes a blueprint under which most campuses can continue serving students and their
communities under new ownership.
Fiction: Campuses are already shut down.
Fact: At the 85 campuses that are for sale, normal and customary operations are continuing.
Students are attending classes as usual. Faculty and staff are at work on their usual schedules.
None of our schools have lost accreditation.
There has been no change in students’ eligibility for Title IV financial aid administered by
the Department of Education.
The Company’s goal is to minimize disruptions for student and staff while Corinthian is
in the process of seeking new owners for these schools.
At the 12 campuses the Company is “teaching out,” operations will continue until the process is
complete.
At these 12 campuses Corinthian has already ceased new enrollments.
However, as in the past, the Company will keep faculty and other staff on these
campuses until current students have completed their programs or transferred to a
comparable program.
This is a gradual wind‐down that will continue over a period of months.
Fiction: CCi is teaching out 12 campuses because the ED forced it to.
Fact: After evaluating all 97 U.S. campuses, Corinthian decided to “teach out” 12 because the
Company did not believe it could find new owners for them. This occurred prior to ED’s recent
actions.
Corinthian evaluated all c