Page 100 - TrumpsEconEra_Flat

Chapter 4: Government Overreach

However, the federal government considers Rachel
Carson a failure because it does not fit its definition of
success as improvement in test scores of different
groups. Rachel Carson has high average scores, but fails
because it has achievement gaps when it breaks out test
results by such categories as race, gender, and income.

Another example of not meeting government
standards is Corinthian College, a college with more
than 100 campuses. Private colleges, like Corinthian,
specialize in training students for blue-collar jobs, jobs
like driving big commercial trucks, nursing, cloud
computing, web development, database programming,
software development, and network security. These
colleges offer degrees in healthcare, business, criminal
justice, transportation technology, construction trades,
and information technology.

Corinthian College was a for-profit college and
one of the largest for-profit post-secondary education
companies in North America. Because the college failed
to meet government mandates promptly, the
Department of Education put it out of business.

The federal government restricted the company’s
access to federal funding because of what it considers
inadequate marketing, excessive dropout and student
loan default rates, and unfulfilled promises. Because
80% of Corinthians’ revenue came from federal
funding, $1.4 billion in federal financial aid each year,
this action was a death blow to the college.

The Consumer Financial Protection Bureau
(CFPB) wiped out company shareholders and creditors
by accusing the college of predatory lending. The
government claimed that Corinthian used aggressive

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