The For-Profit College That's Too Big to Fail

For years students flocked to schools run by Corinthian Colleges, one of the largest for-profit education companies in the U.S. Attracted by late-night TV commercials and Internet ads for vocational certificates and online business degrees, they enrolled on the promise that the extra career training would give them a leg up in the job market. The marketing worked: At its peak, in 2003, the publicly traded company was worth more than $4 billion. About 72,000 students attend Corinthian’s three chains—Everest, Heald, and WyoTech.

Like other for-profit colleges, Corinthian, based in Santa Ana, Calif., has long fought allegations by state and federal authorities that it preyed on its students, saddling them with debt they wouldn’t be able to repay. For at least eight years, state attorneys general, Senate Democrats, and the Department of Education have been pressuring Corinthian to change its recruiting practices and improve the accuracy of its government disclosures.