AG sues for-profit school for pushing risky student loans

Written By Unknown on Sabtu, 05 April 2014 | 00.32

The attorney general is suing the parent company of a for-profit school, alleging predatory loan practices and deceptive enrollment promises.

In a complaint filed yesterday in Suffolk Superior Court, Attorney General Martha Coakley said Corinthian Colleges, which operates Everest Institute in Chelsea and Brighton, pushed students into subprime loans with 18 percent interest, and misrepresented its job placement program.

"This for-profit school aggressively recruited and misled students," Coakley said.

Holly Roberts, a mother of three from Dorchester, said she was led to believe the program would result in a job, and was not told the total cost up-front.

"They rush the process; they want to get you enrolled as soon as possible," Roberts said. "They don't explain it to you; they don't give you a total."

Corinthian Colleges defended its schools in a statement.

"Today's action by the Massachusetts Attorney General's Office disregards substantial, independent evidence that our two schools in Massachusetts have a strong record of offering students a quality education and treating them honestly and fairly," the statement said.

Corinthian also said it was not given an opportunity to investigate specific complaints or issues from individual students.

"We would have looked into anything that they had shared with us," Corinthian spokesman Kent Jenkins said.

Brad Puffer, a spokesman for the attorney general, said, "The school is attempting to divert attention from its own unfair treatment of Massachusetts consumers."


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