new documents indicate that Everest College and specifically
Corinthian Colleges Inc which is the major company that
Everest College falls under have been falsifying the number of job placements
that their colleges have been successful in
so to give you a specific example but Joe job placement rates
will include people who have studied to be a chef
at Everest College and then if they get a job at McDonalds they're considered
gainfully employed
well we all know that that's not really the the truth that's not gainful
employment if you've taken out tens of thousands of dollars in student loan
debt
yeah I got news for you coulda gotten a job with the McDonalds without going to
any college okay so that was the point to go to the for-profit college
it's not like when they seduce you would like all he would get your great job
it's not like the minute you that great job might be flipping burgers at
McDonald's
exactly so now more information has come out
indicating that a lot of times these colleges specifically
Everest College will literally pay temp agencies
employers about two thousand dollars to hire
its new graduates after they get hired bill remain in that company for a little
while
and then they get fired and then because the turnover the higher
newer graduates that way their job placement rates look much higher than
they really are
but they don't actually keep those jobs they usually get let go
its unbelievable to me that this is going on and that they get to get away
with it
so for conservatives who care about government waste and fraud this is that
pitted
okay so but you might think why I think given two thousand dollars a student
turned higher than for the speech at an end up buying them from the big jobs
that seems like a lot of money to spend for the school
no over decade the schools gun 10
billion dollars in federal government subsidies
that our money and get somebody to what it does is it fund the education these
kids they don't really educate them that well
then they get the big job so than later they go to the government on her look at
known as krajina turning chance for giving and giving giving giving you make
more money
so that's why it's a scam but this is not a great colleges throughout the
country
they've been doing a great job for decades on end this is this is this
for-profit colleges a relatively recent
burgeoning phenomenon where they taking advantage of the laws that are set up
to get all the federal money and did not really give the kids in education
so they maximize their profits and they minimize their losses
and remember they have shareholders so at the end of the day that's what
they're most concerned about making money because this is
of course a for-profit college with Mark with other colleges even if it's a
private college
usually the money that they earn will go back into the University they don't
use it to pay off their shareholders but in this case is completely different
I want to give you guys an example why this is so bad so
usually during an economic downturn these colleges prospered the most
because they have very misleading ads to give you an example between 2007 and
2011
when the economy was terrible in Romans for Everest College soared from
62002 93,000 the vast majority of the money that these companies make
is through taxpayer money is Jake mentioned and to give you something how
much about money comes from the federal government
it's between eighty to ninety percent depending on which for-profit college
you're talking about
so given those numbers obviously what they gotta do is get more those tunes in
to get that federal money
right and by hook or by crook so we knew we discover they've been running the
scam
and think about the kids to write they get excited like a week I got a job they
man everest delivered for me I got this government but the construction is a
good job or not whatever you know that's a different issue
I don't know the release a report at least I got killed outright and then
be a fire in a couple months because that was the plan all along yet and they
bring in the new set aside
stay specifically look for companies that have high turnover rate
so they can keep the rotation going now they also budge the number in other ways
I'll let me tell you out what Huffington Post found in their investigation
they found that a dental assistant graduate who worked at a one-day
volunteer event
as placed in the field so if you know if you're like an intern or when they
volunteer oh you're gainfully employed
business graduates who got jobs moving boxes and warehouses were considered
successfully employed in
logistics and remember they got a lot of heat for not
actually getting jobs for their students because
group the other thing you have to keep in mind is educating the kids actually
is a high-cost
the one the shareholders to get more pappas executives to get more
higher salaries they don't walk or cause they want less cost
that's really expensive to actually educate them so that's why the need to
show
in the numbers I don't worry about what we did educate 'em we got all these
guys hiring logistics those all okay
it moving boxes around the warehouse if they got a job at all
so the final piece of the story is actually the most devastating if you ask
me
a lot of these were probably colleges will lie in the recruiting process they
will say hey we have high job placement numbers you should definitely come to us
you should take out those loans it'll be beneficial for you
reality it's beneficial for them and then at the end of the day they're lying
not only to the students but they're also lying to their shareholders
so as a result one of these for-profit companies known as Career Education
Corporation
was recently sued by shareholders and the shareholders received
a huge settlement the summit was twenty seven point five million dollars they're
like hey you know what
you lied to us job placement Sox the education you provide sucks
and saw the judge ruled in in the shareholders favor well
here with the reality is when it comes to individual students
because I'm a Supreme Court ruling in 2011 they can actually
they can not get together and threw in a class action lawsuit
can you believe my yeah you can do a class action lawsuit
if you are that the actual student who has been affected by these lies
well the courts have slowly been also been taken over by multinational
corporations and some other through elections when you have elections for
cords
they want up spending a lot of money in that election getting a pro Cup
corporate judge is different ways they're corrupted the judicial system
and so the judicial system is been slowly
outlawing more MORE different kinds a class action lawsuits
because those the ones that the corporations have to worry about your
individual units to Walmart or giant for-profit college
you don't have enough resources is a real threat is if your get together
and national corporations don't want you to do it all they don't you get together
have
collective bargaining if you're an employee class action lawsuits if you
the customers
et cetera and they manage to do that in so many ways and one other thing is
really important about
in general about public corporations
is it it creates an Achilles heel capitals and now a believer in
capitalism
and and I think we need to protect it but you're not doing any papers by doing
this here's why
the reason why she always keeps suing the executives at companies
in this case for poor proper cause been loving is this is
it's because what's a public corporation and executives don't
own the company they don't give a damn about the company
and they don't give a damn about the shareholders their jobs is a broad drive
up the price
by hook or by crook so they can to get as much money
in compensation as possible is shorter and a good cause the collapse like
company long-term
they don't give a damn so you we gotta find a way to fix that
right otherwise shareholders as well as the customers as well as employees
will continue to get screwed ad nauseam