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April 15, 2015

Corinthian Colleges has come under increased government scrutiny. (Mallory Noe-Payne/WGBH)

The U.S. Education Department has fined the for-profit giant Corinthian Colleges $30 million for recruiting students with inaccurate job placement rates. The Department has ordered Corinthian to stop enrolling students at 12 campuses in California, Hawaii and Oregon, saying the career college violated students' and taxpayers' trust.

"Their substantial misrepresentations evidence a blatant disregard not just for professional standards, but for students' futures," said Undersecretary Ted Mitchell. "This is unacceptable, and we are holding them accountable." 

In a statement, Corinthian said the Department's decision was "highly questionable" and it plans to appeal.

Corinthian, once one of this country's largest for-profit colleges, is under increased state and federal government scrutiny. In July, the for-profit agreed to put 85 of its U.S. campuses up for sale and to close a dozen more.

The hefty fine comes as a group of former Corinthian students demands the government forgive their outstanding student loans. Earlier this year, students who took out loans to attend a number of for-profit institutions owned by Corinthian announced that they were going on "debt strike." They say the for-profit has used dubious legal and ethical techniques to attract students.

Listen back to our story about students bracing for Corinthian's shutdown:

department of education, increasing access and success, corinthian, confronting cost, for-profit, student loans

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