The U.S. Department of Education has not cut off federal funding to schools that have been targeted by state attorneys general, the Consumer Financial Protection Bureau, the Justice Department, or the Securities and Exchange Commission on grounds of suspected fraud. But it is unclear whether any such action will be taken against Corinthian Colleges, which was founded in 2003 with a promise to help students pay for college. Furthermore, the report alleges that for-profit colleges have been manipulating their student outcome data to obscure their worst-performing campuses, and thus going on to receive hundreds of millions of dollars in federal student aid.
The U.S. Department of Education has not cut off federal funding to schools that have been targeted by state attorneys general, the Consumer Financial Protection Bureau, the Justice Department, or the Securities and Exchange Commission on grounds of suspected fraud. The New York Times reports that officials are wary of stopping the flow of money based on accusations, and for-profits targeted in these investigations do not admit any wrongdoing. Furthermore, the report alleges that for-profit colleges have been manipulating their student outcome data to obscure their worst-performing campuses, and thus going on to receive hundreds of millions of dollars in federal student aid.