A $1.17 billion default judgment against the bankrupt operator of for-profit colleges, Corinthian Colleges Inc.
Although state may not be able to collect, but at least some former students can payy off loans though this program. The judge ordered $820 million in restitution to the students, with the rest going to civil penalties.
" Judge Curtis Karnow ruled that Corinthian engaged in false advertising the exaggerated its job-placement rates along with other illegal behavior. It promised classes it did not actually provide, unlawfully used the official seals of branches of the U.S. military, engaged in illegal debt collection, and misrepresented its financial health and how easily its class credits could be transferred to other colleges. "For years, Corinthian profited off the backs of poor people - now they have to pay. This judgment sends a clear message: there is a cost to this kind of predatory conduct," Harris said in a statement."
I know several students and they have been devestated by not finding the job they were trained for and stuck with the bill!!