Everest College

Everest College was a system of non-profit and for-profit colleges in the United States. The majority of the schools were owned and operated by Zenith Education Group,[1] a division of ECMC, which also owned Everest University, Everest Institute and WyoTech. Corinthian Colleges, Inc. owned Everest College based in California, Heald College, and WyoTech's California campuses. They offered education programs in fields such as accounting, business administration, computer information science, health care, paralegal studies, massage therapy and building trades. Depending on the location and program, the school had day, evening, or weekend classes.

In 2007, Corinthian Colleges completed the process of unifying all its schools under the Everest brand name. Former schools that became Everest Colleges include: Bryman College, Ashmead College, Mountain West College, Olympia College, Kee Business College, Parks College, Western Business College, Blair College and Springfield College. In December 2007, Corinthian Colleges, Inc. (CCi) re-branded their Ontario campuses as Everest College and sold the remaining campus locations across Canada to the Eminata Group.[2]

In 2012, Everest College in Hayward, California was issued a "Notice to Comply" by the California Bureau for Private Postsecondary Education for multiple violations, including engaging in "prohibited business practices."[3]

Corinthian Colleges is under investigation by several states attorneys general for deceptive advertising and other fraudulent acts. California Attorney General Kamala Harris has filed a complaint alleging that CCI has engaged in a predatory marketing campaign targeting job seekers and single parents with incomes near the federal poverty level. The Department of Justice obtained internal company documents in which CCI employees describe the company's target demographic as "isolated," "impatient," individuals with "low self-esteem," who have "few people in their lives who care about them" and who are "unable to see and plan well for future." The complaint alleges that CCI's has used aggressive internet and telemarketing campaigns, as well as television ads on daytime shows like Jerry Springer and Maury Povich to reach to these individuals.[4][5]

In November 2013, Corinthian Colleges reported that they were under investigation by the Consumer Financial Protection Bureau.[6]

The diplomas issued by Everest College were described as worthless, the reputation tainted.[7]

On February 3, 2015, Corinthian Colleges sold 53 of its Everest and WyoTech campuses and online programs to the Zenith Education Group, a new subsidiary of the ECMC Group.[8]

The Ontario government stepped in and shut down 14 Everest College of Business, Health Care and Technology campus locations owned by Corinthian Colleges on February 19, 2015. The next day, Everest College in Ontario, Canada declared bankruptcy.[9]

Accreditation

Accreditation for Everest College varies by country, state and region. Everest College campuses that are regionally accredited are Everest College Phoenix, Everest College Mesa and online courses taught through Everest College Phoenix. All other Everest College campuses are nationally accredited.[10]

Generally, credits from nationally accredited institutions are not transferable to other colleges and universities.[11]

In 2009 Everest College Phoenix was placed on academic probation by its accrediting body over concerns that it did not have enough autonomy and control over on-campus academics and operations from the parent company, Corinthian Colleges, Inc. In September 2010, the North Central Association of Colleges and Schools rejected a recommendation from its evaluation panel that the school's accreditation be revoked outright. In November 2010 the Higher Learning Commission voted to place the campus on a "Show-Cause" status which will require the College to demonstrate to the commission why its accreditation should not be revoked. Everest College Phoenix has until March, 2011 to respond to the request and the matter is not expected to be resolved until November 2011. The College remains an accredited institution during this period.[12]

Controversy

In July 2007, the California Attorney General threatened to file suit against Corinthian Colleges, corporate parent of Everest College, unless it settled allegations that it had misrepresented its placement statistics.[13] According to a case filed in Los Angeles County Superior Court, Corinthian Colleges allegedly "engaged in a persistent pattern of unlawful conduct" by overstating the percentage of those who obtained employment from its courses, inflated information on starting salaries and made misleading or false statements about which programs it was authorized to offer and which were approved by the California Department of Education.[14] The suit stated that Corinthian's "own records show that a substantial percentage of students do not complete the programs and, of those who complete the program, a large majority do not successfully obtain employment within six months after completing the course."[14] In late July, Corinthian Colleges agreed to pay $6.5 million to settle a lawsuit alleging that the chain engaged in unlawful business practices by exaggerating its record of placing students in well-paying jobs; the amount included $5.8 million in restitution to students as well as $500,000 in civil damages and $200,000 in court costs.[14]

Everest was one of 15 for-profit colleges cited by the Government Accountability Office for deceptive or questionable statements that were made to undercover investigators posing as applicants. Two unnamed campuses were cited in this report.[15] Department of Education statistics indicated that Everest College graduates had the highest default rate of any school in California for students entering repayment in 2010[16] and the fifth highest rate in Arizona.[17]

In September 2010, a group of Everest College graduates sued the school for fraud, alleging deceptive recruitment practices concerning costs of attendance, the value of the degree, and whether credits earned there would transfer to other schools.[18]

In Milwaukee, Wisconsin, where a Corinthian Everest campus was financed with $11 million in city bonds, 25% of students found jobs and over half dropped out; the campus closed in 2012, two years after it opened.[19][20]

In October 2013, the California Attorney General filed suit against Corinthian Colleges, alleging "false and predatory advertising, intentional misrepresentations to students, securities fraud and unlawful use of military seals in advertisements."[4] According to the Sacramento Bee, fourteen Everest College campuses registered three-year default rates on student loans of more than 20 percent; eight were more than 30 percent.[21]

In 2014, Everest announced the sale of all 14 locations in Canada after a probe by the parent company over concerns of falsified job placement and grades.[22] In February 2015, Canada's National Association of Career Colleges announced that Everest College's Ontario locations had their operating license suspended by Ministry of Training, Colleges and Universities (Ontario).[23]

On February 19, 2015, Ontario's superintendent of private career colleges, the independent regulator that governs schools like Everest and others in the province, said it has suspended the chain's licence to operate in Ontario as a private college, effective immediately. [24] Former students and teachers claim the college was corrupt and a scam.[25] On February 20, 2015, Everest College Canada filed for Bankruptcy protection.[26]

Everest College campus locations in the United States

Former[27] Everest College of Business, Health Care and Technology campus locations in Ontario, Canada

References

  1. http://www.ed.gov/news/press-releases/more-50-corinthian-campuses-transition-nonprofit-status-under-zenith-education-group
  2. CCI sells campuses to Eminata Group News Release Dec. 14, 2007
  3. Notice to Comply, California Bureau for Private Postsecondary Education, 2012
  4. 4.0 4.1 "Who Owns The Awful Corinthian Colleges? Wells Fargo, Marc Morial, Pension Funds". Huffington Post. 15 October 2013.
  5. +Steve Rhode. "California Sues a Number of Colleges for Doing Bad Stuff". Get Out of Debt Guy - Steve Rhode. Retrieved 17 March 2015.
  6. "For-Profit Colleges Face Consumer Bureau Probe on Lending Roles". Bloomberg.
  7. Harris, Sophia. "Everest College grads want loan forgiveness for 'worthless' diploma". CBC News. Retrieved 17 April 2015.
  8. https://www.insidehighered.com/news/2015/02/04/guaranty-agency-buys-half-corinthian-colleges-and-forgives-480-million-student-debt
  9. "Everest College files for bankruptcy as other schools offer help". CBC News. Retrieved 18 April 2015.
  10. "Everest: Accreditation Information". everest.edu. Retrieved 17 March 2015.
  11. Tussling Over Transfer of Credit, Inside Higher Ed, February 26, 2007 by Doug Lederman
  12. "Credentials of Everest College in jeopardy," The Arizona Republic, November 17, 2010.
  13. "Vocational School Faces State Lawsuit, Corinthian Colleges is pressed to settle claims that it has exaggerated job placement rates," Los Angeles Times, Henry Weinstein, July 3, 2007.
  14. 14.0 14.1 14.2 "Vocational school chain settles suit," Los Angeles Times, August 1, 2007.
  15. Vise, Daniel de; Paul Kane (2010-08-05). "GAO: 15 for-profit colleges used deceptive recruiting tactics". The Washington Post. ISSN 0740-5421. Retrieved 2010-08-05.
  16. Perez, Erica (27 September 2010). "For-profit Everest College has highest student loan default rate in state". California Watch. Retrieved 20 November 2010.
  17. Pallack, Becky (14 September 2010). "Ariz. is worst for student loan defaults". Arizona Daily Star. Retrieved 20 November 2010.
  18. Maffly, Brian (28 September 2010). "Everest College grads sue, alleging fraud". Salt Lake Tribune. Retrieved 20 November 2010.
  19. Herzog, Karen (18 October 2012). "University of Phoenix to close three state campuses". Milwaukee Journal Sentinel. Retrieved 19 February 2015.
  20. "Cashing in on Kids: 139 ALEC Bills in 2013 Promote a Private, For-Profit Education Model". PR Watch. Retrieved 17 March 2015.
  21. http://www.sacbee.com/2013/10/27/5855028/heald-college-students-echo-california.html#storylink=cpy
  22. "All Everest College locations in Canada up for sale". cbc.ca. 8 July 2014. Retrieved 17 March 2015.
  23. "NACC - NACC Statement: Everest College Canada". nacc.ca. Retrieved 17 March 2015.
  24. "Everest College students in Ottawa share anger at sudden closure". cbc.ca. 19 February 2015. Retrieved 17 March 2015.
  25. "Everest College closure no surprise to some who call it a scam". CBC News. Retrieved 26 February 2015.
  26. "Everest Colleges Canada, Inc. Files for Canadian Bankruptcy Protection Following Ontario Ministry Closures". Everest College. Archived from the original on 25 February 2015. Retrieved 1 March 2015.
  27. http://www.buzzfeed.com/mollyhensleyclancy/canadian-everest-campuses#.un6Zg39MK

External links