CRI Alleged Wrongful Retention of Student Loan Funds

Financial aid is the lifeblood of for-profit schools because, unlike public universities which have some funding some the state, and private non-profit universities, which endowments, this is their main source of money. 

Students in Boise and San Diego have come forward and alleged that loan money distributed to them before the school closed was simply kept by CRI.  Three students in Boise allegedly had $5,000, $7,500 and $9,000 kept by CRI.  On April 25, 2007, one student wrote to the Bankruptcy Court Judge amending her proof of claim to add the $7500.00.

One San Diego student said she and others she is in contact with received living expenses written on CRI corporate checks dated July 28, 2006. However, the checks were not mailed to or received by students until over a month later, arriving at their homes in early September - days after the schools had already closed. The checks bounced, drawn on Washington Mutual Bank accounts.  Because of this and other evidence of fraud, Senator Maria Cantwell's office has requested the Department of Justice to impanel a grand jury to look into what happened at CRI!

How CRI Gamed the Department of Education to Keep Title IV Eligibility

(coming soon)