The Consumer Financial Protection Bureau (CFPB) announced the end of litigation against Corinthian Colleges, Inc. after a federal court penalized the corporate educator for luring students into taking out expensive loans with false job placement guarantees.
Judge Gary Feinerman ordered Corinthian on Tuesday to pay more than $530 million into a fund administered by the CFPB to aid students affected by the college’s fraudulent practices.
CFPB Director Richard Cordray said in a statement Wednesday that the school “severely harmed tens of thousands of students, turning dreams of higher education into a nightmare.” He promised continued vigilance in “rooting out harmful practices” within the for-profit education industry.
The company, however, is unable to pay its fine. Corinthian filed for bankruptcy earlier this year and had most of its campuses sold off in a fire sale organized by the Department of Education.
The CFPB stated in its press release that it will nevertheless pursue relief for students.
“We all have much more work to do before current and past students who were hurt by Corinthian’s illegal practices can be made whole,” Cordray said.
The bureau’s action against the college commenced in September 2014.
