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Corinthian spokesman Jaffe said Leveque's nursing program placed 71 percent of its students in relevant jobs. But consumer advocates say lax state regulations allow even her low-paying part-time job to be considered a "placement" for purposes of convincing prospective students their tuition payments will ultimately result in jobs.
As for the company at large, executive chairman Massimino said the stimulus millions, combined with Democratic support for relaxed consumer protection rules, will help boost company revenue. And rather than serve a vehicle for greater government accountability, as President Obama promised, Massimino suggested the federal stimulus could actually help dismantle the 90/10 rule, originally designed to protect taxpayers.
"Nearly 70 percent of our students, U.S. students, received Pell Grants in fiscal 2009," he said during the Aug. 25 call with analysts. "Congress has also recognized that increases in federal student aid make it more difficult for institutions serving low-income students to meet the 90/10 rule. Just a few weeks ago, the House Education and Labor Committee passed a measure to provide 90/10 relief and the strong bipartisan vote itself, 42-5, was a positive indication about the for-profit sector's standing with Congress."
That's little solace for Francis. "I'm paying back a loan," she said, "and I don't have anything to show for it."
