"In September 2011, Corinthian’s CEO distributed a presentation to his executive team, describing efforts by Corinthian to meet the requirements of the 90/10 rule by instituting “above market price increases to create ‘funding gaps.’” By increasing tuition, Corinthian caused students, who otherwise would have been able to pay for the entire cost of tuition through Title IV aid, to take out private student loans in order to maintain 90/10 compliance. Regardless of whether students were able to repay the private student loans, Corinthian would profit from the increased availability of Title IV monies." ... "In or about Spring 2011, for example, Corinthian increased tuition at Heald College by 14% to ensure that the school received additional non-Title IV funds in order to meet 90/10 requirements."
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Not if the canary is smart.... hence leaving before things officially went to hell.
"Maybe in their next positions they will pay attention when the canary furiously flies out of the mine." Uh, that's a bit backward. It's when the canary dies that there are problems. http://en.wikipedia.org/wiki/Animal_sentinel
Oh the irony! I specifically remember writing an email to my DOA and Admissions Manager about this very subject when the loan program was rolled out. The idea of students financing their education with an interest rate resembling that of a payday loan never sat well with me. Glad I listened to my gut, and jumped ship when I did. Maybe in their next positions they will pay attention when the canary furiously flies out of the mine.
Anonymous37069- No allegations regarding violations before 2011. Sure it could have been much worse before 2011.
Ah, the Genesis loan program. I knew when NA rolled it out that it was going to be sleazy. In the early days, it was one of the student finance "topics" that could ONLY be discussed on phone calls. Nothing in writing, never mentioned in emails, etc by order of NA. Back then MH was her little lackey, and would end the calls with dire warnings for anyone who dared even make an indirect reference to one of the special "topics" in an email.
Why are all the posts on Genesis saying that it started in 2011 or 2012? I've been campus SF for ten years and I know that's not right. Someone else who's been here awhile help me out - when did we start Genesis? Earlier than 2011, right? I know there were changes to the program, but it was obviously a rip-off of the students from the beginning.
Pure evil!
The loans WERE predatory. The intent was discussed openly at meetings. We could only recruit extremely low income students who all qualified for full Pell grant, etc. 90/10 was a huge problem in that situation because there was no way we were going to make it without artificially raising tuition so that 100% of federal aid (typically around $12,500.00 per year or more) would make up less than 90% of what they needed to enroll. None of them have any credit or savings, so we came up with Genesis to be able to package them and count against financial aid for 90/10. We honestly didn't care if the students ever paid it back, we had already made a profit from the Title IV, the Genesis was just gravy. Good old NA had a collections background, though, and was going to squeeze every dollar she could out of the students. Sleazy, sleazy program and typical of CCi.