Statement of Corinthian Colleges RE: Complaint by Massachusetts Attorney General April 2, 2014

Transcription

1 Statement of Corinthian Colleges RE: Complaint by Massachusetts Attorney General April 2, 2014 Today s action by the Massachusetts Attorney General s Office disregards substantial, independent evidence that our two schools in Massachusetts have a strong record of offering students a quality education and treating them honestly and fairly. The Attorney General began its investigation three years ago this month, and has yet to produce a single complaint from any student who attended either of our schools, Everest Institute Brighton and Everest Institute Chelsea. The Office has declined repeated requests to tour our schools, talk with students and see firsthand how we operate. The graduation rates for our programs at Everest Institute Brighton and Everest Institute Chelsea far exceed those for programs of the Massachusetts Community College system, according to U.S. Department of Education statistics. (Note: Although the AG s action relates to both campuses, we are in the process of seeking buyers for the Everest Institute Brighton campus. We have discontinued enrolling new students, and if no buyer is found we expect classes there to conclude by October We will continue providing career services for Brighton campus graduates if the campus closes.) The Massachusetts Office of Private Occupational School Education, the state agency that regulates our schools and monitors them on an ongoing basis, has found no evidence of misconduct as alleged by the Attorney General s office. In fact, this Massachusetts regulator has not alleged any significant violations by either of our schools in the past 10 years. Our Massachusetts campuses have recent job placement rates for graduates that range from 57 percent to 88 percent (depending on the instructional program). We have calculated these rates in a manner that is consistent with accreditation standards and other applicable regulations. The Massachusetts Community College system has no job placement requirements and does not, to our knowledge, monitor job placements for its graduates. During its investigation, the Attorney General s Office attempted to manufacture and retroactively impose its own arbitrary job placement criteria, which have no foundation in law. Regrettably, today s action will serve to reduce access to quality career education for the citizens of Massachusetts. We will vigorously defend the record of our campuses in Massachusetts and our employees commitment to the success of students and graduates.

2 Graduation Rates According to the most recent U.S. Department of Education data, our Everest Brighton and Chelsea campuses had graduation rates of 56 percent and 61 percent, respectively, for their programs. (Source: National Center for Education Statistics; first-time, full-time students who began their studies in ) That same year, the Massachusetts community college system had a graduation rate of 16.4 percent. The system s combined graduation and transfer rate was 32.4 percent. Massachusetts ranked 32 nd among the 50 states in community college graduation rates. The states ahead of Massachusetts include Alabama, Arkansas, Kentucky and Mississippi. In addition, the Massachusetts community college system receives more than $200 million annually in direct subsidies from state taxpayers. Our campuses have received no state subsidies, and have, in fact, paid state and local taxes. State Regulation Since 2012, our Everest Brighton and Chelsea campuses have been regulated by the Office of Private Occupational School Education. Prior to that they were regulated by the Department of Elementary and Secondary School Education. The Office of Private Occupational School Education maintains a website that lists all significant disciplinary actions taken against career colleges by both of these agencies as far back as 2003 ( The site lists no actions of any kind in relation to our campuses. 2

3 Job Placement/Accreditation Instructional programs at our Everest Chelsea and Brighton campuses have job placement rates for graduates that range from 68% to 90%, according to 2013 data submitted to the accreditation agency for these campuses, ACCSC. (For more detail, see attached campus Fact Sheet.) During its investigation, the Attorney General s Office reviewed four- and five-year-old job placement data on a random sample of 252 placements of our two Massachusetts campuses. While they have shared very little of their evidence with us, we understand that they have taken issue with approximately 130 of the 252 placements. Remarkably, the AG s Office disputed 107 of these 130 placements even though they met accreditation and regulatory requirements. To do so, the AG s Office invented a subjective and arbitrary standard that is not included in any Massachusetts law or accreditation rule. Of the remaining 23 out of 130 disputed placements, the AG s Office took issue with 10 because it was unable to reach the employers who hired the graduates. In only 13 cases about 5 percent of total sample of 252 did the AG s Office raise specific concerns about individual placements. Nationwide, Corinthian Colleges has more than 700 Career Services employees dedicated to helping its graduates find employment. That s about one Career Services employee for every 50 graduates. According to one study, community colleges across the nation have about one counselor for every 1,000 students, and those counselors are responsible for everything from academic to personal counseling. And unlike career colleges, community colleges do not track job placement rates or actively work to help their graduates find employment. In 2006, Corinthian formed a corporate verification team that promotes the accuracy of its job placement statistics. We believe this program is the first of its kind in career education. A sizeable team reviews the job placement results submitted by Corinthian s individual campuses, checking with employers to make sure this data is correct. 3

4 FACT SHEET Corinthian Colleges in Massachusetts Everest Institute Chelsea & Everest Institute Brighton For more than 12 years, Corinthian Colleges has provided career education and job placement services to ambitious Massachusetts students at its Everest Institute campuses in Chelsea and Brighton. The schools offer certificate programs including Medical Assistant, Dental Assistant, Medical Administrative Assistant, Massage Therapy and Medical Insurance Billing & Coding, and provide these student services and resources: Qualified instructors with post-secondary credentials and working experience in their areas of expertise; Classes structured in small work teams, which encourages strong group participation and allows students to practice skills in a real-world environment; Personalized one-on-one assistance and tutoring, including calls when a student is late for class and follow up when a student misses class; CARE program, a student assistance referral program to outside agencies for students in need; Access to financial aid counselors and financial literacy training; Free access to computers and the library at the Learning Resource Center; and Career placement services for all graduates. Everest Institute Chelsea Student Completion and Job Placement** Everest Institute Chelsea had 267 students and approximately 37 faculty and staff as of December 31, graduation and job placement rates by program: o Dental Assistant (8 months) 77% graduation/86% employment o Medical Assistant (10 months) 35% graduation/83% employment o Medical Assistant (8 months) 56% graduation/73% employment o Medical Administrative Assistant (8 months) 57% graduation/73% employment o Massage Therapy (9 months) 72% graduation/88% employment o Medical Insurance Billing and Coding (8 months) 58% graduation/90% employment Employer Relationships Everest Institute Chelsea has developed relationships with numerous Massachusetts organizations which hire our skilled graduates, including: o Aspen Dental Peabody o Brigham and Woman s Hospital o All Care Hospice o North Suffolk Mental Health o Massage Envy 4

5 Everest Institute Brighton The Everest Institute Brighton campus has discontinued enrollments and is for sale. If no buyer is found, the remaining students will be taught out, and the campus will close during the fall of 2014 after all students have had an opportunity to complete their programs of study and receive career placement services. Student Completion and Job Placement** Everest Institute Brighton had 235 students and approximately 34 faculty and staff as of December 31, graduation and job placement rates by program: o Medical Assistant (10 months) 65% graduation/73% employment o Medical Assistant (8 months) 59% graduation/68% employment o Dental Assistant (8 months) 66% graduation/68% employment o Medical Administrative Assistant (8 months) 57% graduation/82% employment Employer Relationships Everest Institute Brighton has developed relationships with numerous Massachusetts organizations which hire our skilled graduates, including: o Ace Employment Services o Carney Hospital o Whittier Street Health Services o South End Community Health Center o South Boston Community Health Center o Bullfinch Temporary, which handles hiring of medical assistants for Massachusetts General Hospital and Brigham & Woman s Hospital. **The graduation and employment statistics for Everest Institute Chelsea and Everest Institute Brighton were reported to the Accrediting Commission of Career Colleges and Schools (ACCSC) in November 2013, and include students who enrolled in these programs during a one-year period from early 2011 through early As required by federal regulation, these statistics are posted on the websites of the Chelsea and Everest campuses. 5

6 Graduation Rates in Massachusetts Community Colleges, For-Profit Colleges and Everest Brighton and Chelsea Campuses The U.S. Department of Education s Institute of Education Sciences and its National Center for Education Statistics publishes the graduation rates of all U.S. public and private two- and four-year colleges and universities. The chart below, drawn from Department of Education statistics, presents a comparison of the graduation rates of all Massachusetts community colleges ( two-year public ); all Massachusetts for-profit career colleges; and Corinthian s Everest Brighton and Chelsea campuses for students who began their studies in (the most recent data available). Two-Year Public Community Colleges 1 Two-Year For- Profit Colleges Everest Brighton Programs (certificate level) Everest Chelsea Programs (certificate level) All Students 16.4 percent 59.2 percent 56 percent 61 percent African American Students 9.2 percent 52 percent N/A N/A Hispanic Students 10.5 percent 42.5 percent N/A N/A 1 This figure does not include students who transfer to another institution. When transfer students are included, the completion rate rises to 32.4 percent. 6