Frontline (1983–…): Season 34, Episode 11 - A Subprime Education/The Education of Omarina - full transcript
A Subprime Education examines reports of predatory behavior and fraud in the troubled for-profit college industry and the implosion of Corinthian Colleges. The Education of Omarina details how an innovative program to stem the high school drop-out crisis has affected one girl's journey, from a public middle school in The Bronx to an elite New England private school, and now onto college.
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- Tonight on - Frontline,
two reports about
education in America.
- The closing of ITT Tech
is affecting students...
First, for-profit colleges
and allegations of
fraud and predatory behavior.
- They were targeting the most
vulnerable and desperate people.
Frontline investigates
the rise and fall
of this once booming industry.
You have termed these
students that are signing
up for these courses as
"subprime borrowers."
- Yeah,
that's a fair characterization
of the types of students
that are being served.
And later, we've been
checking in on Omarinan Oa
since middle school,
where a dedicated group of educators
helped to turn her life around.
But even more amazing,
they stuck with her.
- No one in my immediate family
has graduated high school
and gone into college.
However, I believe I'll be the first
one, and they'll be
excited and thrilled and they'll
be proud of what I've become.
These two stories on
this special edition of
Frontline.
A SUBPRIME EDUCATION
In the spring of 2012,
Hollie Harsh and Brian
French were both homeless and
looking for ways to improve
their lives.
- We were addicted to
methamphetamine for a while,
and we ended up in a bad place,
going homeless in a tent.
And it was like
that for four years.
We just one day
said, "We're done."
We had enough.
- I had started getting online,
doing some research about
government grants, and I put in
my email address, phone number,
all the information
that they asked for.
Brian had stumbled on a
lead-generating website
that collects information
from visitors.
Within 24 hours,
they got a sales call from Corinthian
Colleges, one of the largest
for-profit schools in the
country.
He has a deep accent, and he
tells me that they will grant
me a decent amount of money.
And I thought,
"We owe this to the kids to move forward
in our lives."
The recruiter offered
Hollie and Brian money
if they toured a few branches
of Corinthian, including Heald
College in Concord, California,
which was near their encampment.
- I felt that, like,
we almost didn't have a chance to say,
"No, let's think about it."
And I do...
If I remember correctly,
it was only three or four days that
we started school after that.
- And you said to
them, "I'm homeless"?
- Yes.
And she was like, "Oh, that's
fine, a lot of our students are
homeless in the same situation."
In order to enroll,
Hollie and Brian signed up for
federal student loans totaling
$30,000, all to be paid after
they graduated.
But they had no money for
housing, so they simply moved
their tent and belongings to
a vacant lot next to campus
and began going to class.
- Welcome to my school!
Around 1.8 million
students are enrolled
in for-profit colleges across the
country, in mega-schools
like Argosy, DeVry,
and Grand Canyon University.
You've got $60 million invested?
I started reporting on this
sector back in 2009 during the
Great Recession.
How big can you go?
With unemployment up,
Americans were choosing to go back to
school in record numbers.
- Well, the irony is, Dylan,
that when the economy is tough
is when people actually look
to go back to school and either
upgrade their skills or maybe
complete their B.A., so...
Back then,
I had looked at the University of
Phoenix, one of the largest
universities in the world.
At its peak, Phoenix had
enrolled over 600,000 students.
I spoke to a former
high-ranking executive.
- For the first 15 quarters,
we broke records and earnings
every quarter.
And instead of starting classes
in September and January,
we started classes in January,
February, March, sometimes two
in April.
If we had more students
than we could handle,
we'll build another site
and handle some more.
We built campuses by a freeway
because we figured that's where
the people were.
So if you went by any major
freeway in the Southwest,
you're going to find a
University of Phoenix campus.
We put schools 20 minutes apart
because that's about as far as
people could drive at rush hour.
How much could a
college administrator
for University of Phoenix make?
- The sky was the limit.
I shouldn't say this.
I shouldn't say this.
It's a free country.
- I understand, I understand.
But it's boasting,
and I won't say it.
Well,
in terms of how much you made,
you did very well?
- We did very well.
I did better than
I ever imagined.
- Education stocks rallied
today, including Corinthian
Colleges.
In an otherwise flat
market, for-profits had
taken off.
- Education stocks are moving
to the head of the class today.
- $24 billion, that's how much
the biggest for-profit colleges
took in last year in federally-
funded student aid money.
- Not just a job
search; a journey.
Not just an interview.
For-profits were spending
big money enticing
students to sign up for loans.
- Whatever your business card
says, you're in the business
of you.
At the time,
ad costs rivaled those
of multi-national brands.
- Which university
revolutionized education
in America to reach
the working learner?
- You thinking about
going back to school?
- Yes.
- Excellent,
what are you thinking about going for?
The industry also employed
an army of salesmen
and recruiters.
- The for-profits need to
continually add students.
When you think about it,
for the University of Phoenix,
for example, in order to grow
on top of the folks that are
leaving, you've got to add the
equivalent of, you know, one
to one-and-a-half
Ohio States per year.
- To satisfy their shareholders
on a quarterly basis, they've
got to increase
their enrollment.
They have to aggressively
recruit marginal students.
- Because only one thing
counts in this life.
Get them to sign on the
line which is dotted.
- Glengarry Glen Ross.
It's that sort of a heavy
commercial environment in which
you say whatever you need
to say to close the deal.
The pressure to grow
encouraged dubious
enrollment practices.
Tami Barker was an enrollment
advisor at Ashford University.
They used to tell us,
you know, "Dig deep.
Get to their pain.
Get to what's bothering them
so that that way, you can
convince them that a college
degree is going to solve all
their problems."
- The problem is that for many
of these students, they think
they're talking to an admissions
advisor, they think they're
talking to someone with some
sort of ethical standards,
and they don't realize that
they're talking to a person
who is selling them something,
and that they might be
better off to just walk away.
Many students assumed they
were getting a quality
education and a useful degree.
- I love Grand Canyon and the
community that it represents,
and also the
Christian background.
- This school is just perfect.
It's night classes.
- I'm studying merchandise
product development, and it is
the coolest thing I've
ever done in my life.
I love it.
In 2010, the top
Washington lobbyist for the
sector told me it was all about
providing new opportunities.
- We educate the students that
traditional higher education
has given up on.
Traditional higher
education has become a very
socio-demographically elite
group of people, so the only
options lower-income students
and working adults have
is either to go to a community
college, some of them can go to
minority-serving institutions,
and our option is the third
option.
But for years,
for-profits had been charging
students nearly five times
as much as community colleges
and gotten the bulk of their
revenue, up to 90%, from student
loans and grants.
- This is the most heavily
subsidized private business
sector in America.
No one compares.
Defense industry, agriculture?
Don't hold a candle
to these boys.
- Hey ladies, you have to hold
the household down, right?
Why can't you get an
education for yourself?
You still can work,
you can still take care of your kids.
I did it, you can do it too.
But not all the promises
were paying off.
- The whole world opens up for
you, but you got to do
something right now.
You can't wait.
Back in 2010,
I met three students who had enrolled
at Everest, part of the
for-profit giant Corinthian.
They were hoping to become
nurses, but it wasn't going
according to plan.
- They said that we were going
to be making $25 an hour, and...
- $25 to $35, they told me.
So I was, like, "Okay."
And they're going
to find us a job.
- They're gonna find us a...
- They're going to place us.
- I got my license in December of
'09, and I've been on
countless interviews.
And they all ask if I've ever
been in a hospital, and I would
have to tell them we never
set foot in a hospital, ever.
We went to a museum of
Scientology for our psychiatric
rotation.
- Our pediatrics rotation,
we went to a day care.
- Oh, yeah, that was our PEDs.
We went to a day care.
After our report aired,
John Oliver picked up
the story.
- Job hunting might be a little
difficult, as students from a
Corinthian College
nursing program found.
- We went to a museum of
Scientology for our psychiatric
rotation.
- What?
Scientologists do not
believe in psychiatry.
- This is the next big
scandal in America!
Washington also started
paying attention.
- This sort of reminds me of
where we were two years ago
with liar loans and no doc loans
in the housing market, where
people started accepting people
who couldn't prove their income,
couldn't prove employment,
but we sold them a $450,000 house.
And in a handful of hearings,
some for-profits were
accused of employing false or
misleading advertising and using
illegal recruitment efforts.
- 15 of the 15 schools the GAO
investigated found instances
of fraud, deceptive practices,
or made misleading statements
to prospective students.
In this hearing,
they unveiled hard evidence.
- And if you can just sign
and date right there for me.
- Okay, now, I'm not signing
up for the school right now?
- Yeah, you're actually
reserving your seat.
- Oh.
I was hoping I could talk to
the financial people first.
- No, they won't even
let you back there.
- Am I on the hook
for the $38,000?
- The thing about those tapes
is that it was really hard
in the face of this evidence
to deny that there was
a problem there.
- You should be ready to make
the investment of time and money
necessary to get you to where
you should be at this point.
But you're not.
What are you really afraid of?
Congressional investigators
also found that
for-profit schools were failing
to prepare students for the
workforce.
- Too many of the students who
go to these schools are coming
out with nothing other than
big debt and no education,
no gainful employment at all.
In 2010, the Department
of Education attempto
regulate the industry by
implemg some new rules.
- We're going to start
with gainful employment.
But the department ran
into intense resistance.
- The lobbyists for the
for-profit industry and
unfortunately many members
of Congress challenged those
regulations,
critiqued those regulations.
- This so-called "gainful
employment" regulation is
another example of this big
federal government run amok.
- They were overwhelmed.
They ran into this withering
artillery fire of lawyers
coming after the administration
and beat them back.
- Well, they're doing
everything they can to screw up
education.
- The fact that the sector
has declared an existential
emergency around this,
the sector has every lobbyist
in town, former members
of Congress on its payroll
to defeat this, really kind of
speaks volumes about the level
of corruption and the kind of
feeding frenzy we're talking
about.
- when the House of
Representatives voted to
prevent the Department of
Education from implementing
tough new rules that could
deprive certain schools from
federal funding.
- former ventures:
Trump University.
It's been the subject
of increased scrutiny.
Today, allegations of
predatory behavior and negative
press continue to
dog the industry.
- The Clintons got filthy rich
off a for-profit university
that took advantage
of many poor people.
But since I last reported
on these schools,
a lot has changed.
- Are the for-profit schools
value stocks or value traps?
- One of the big losers
though, that was Apollo Group,
that operates the
University of Phoenix.
For-profits are no longer
the darlings of Wall
Street,
and enrollment is way down.
In San Francisco, I talked with
Trace Urdan, a banker who kept
buy ratings on several
for-profits for much of the last
decade.
They are into decline, why?
- Mostly market conditions.
The economy recovers and
everybody finds a job, and then
all of a sudden, you know,
that trade-off that said, "Well, hey,
wait a minute, why should I
borrow all this money so that
I can earn the same amount of
money that I can earn at Jamba
Juice?
That doesn't make any sense."
You have termed these
students that are signing up
for these courses as
"subprime borrowers."
- I knew that was
gonna come out.
Yeah.
They were subprime borrowers.
I mean, that's a fair
characterization of the types of
students that are being
served, right?
These are unsophisticated
students that have a great deal
of risk.
Now, that's not true across the
board with for-profit education,
but certainly when we're talking
in the context of Corinthian.
Corinthian.
That's the for-profit chain
that included Everest College.
It's the school those three
nursing students had attended.
We looked one of them up,
Martha Salmon, and found her living
in Southern California.
Martha had paid back the $28,000
she owed in student loans,
but at a cost.
- That was money that could
have gone towards my house
or for my kids.
It could have gone a
lot of different ways.
But I just wanted
to get rid of it.
Her degree from Everest
never resulted in
nursing work,
so she was forced to start over.
- I got my R.N.
from Citrus College.
It's a community
college in Glendora.
And from day one,
the start of that school was totally
different from Everest.
There's really no comparison.
For our psych rotation at
Citrus, the R.N. program,
we went to a psych hospital.
And we were there for four
weeks, and we were able to
interact with the patients.
We followed the nurses
while they gave medication.
It was at an actual psych
hospital; it wasn't a museum.
- And how much did it cost you
to get a degree from a community
college?
- My R.N. cost $3,000.
But the education that you
receive, the money that you save
is... there's no comparison.
Stories like Martha's
got the attention of,
California's Attorney General.
In 2011, Kamala Harris
started investigating.
- As we started diving into it,
it became clear that Corinthian
was engaged in extremely
predatory behavior and conduct.
And so we sued.
This morning,
my office filed suit against Corinthian
Colleges, and in what can only
be described as a for-profit
college predatory scheme.
A lot of what you charged
was that there was
a misrepresentation of
job placement rates.
- Absolutely.
Convincing students that if you
sign up to receive an education,
we will ensure you
will also get a job.
That was all, uh...
I'm gonna say a polite term:
that was wrong and inaccurate.
It was B.S.
- It was B.S.
It absolutely was.
Harris based her complaint
on interviews with
over 100 employees and students,
including Hollie Harsh and Brian
French, the homeless students
at Corinthian's Heald College.
- That's a pretty girl!
Hi!
Hollie and Brian had
dropped out of Heald
in their third semester,
but the bills kept on coming.
- And I was just like,
"How am I going to pay this?"
- Yeah,
we still got bills coming out.
They still want their,
what is it, $288 a month
that they want to get from us.
- For you.
- Oh, for me alone.
- Can you afford that?
- No, not really.
We're living paycheck
to paycheck as it is.
Kind of what I say I got from
Heald was a $16,000 t-shirt.
That's what we got.
Hollie Harsh, Brian
French, homeless, recruited
to sign up for government
loans to go to school.
Is that an extreme case?
Are they outliers?
- Anyone is a target.
They were targeting the most
vulnerable and desperate people,
people who felt that they
were without resources.
This was by their own
marketing materials.
How do you explain that
there are people that would
want to take advantage
of people like that?
- It's greed.
- Everest College is accredited
by the West Coast Commission
of Non-Accredited Schools.
You can learn anything.
Corinthian would fast
become the poster child of
predatory for-profits.
Videos lampooning Corinthian
flooded onto YouTube.
- You're probably just sitting
at home watching Maury.
I like Maury; I want to
know who the daddy is too.
Make a decision, make a choice.
You gotta call Everest.
You still here?
By 2013, California's Attorney
General would share her
findings with the
Department of Education.
Soon after, officials in
Washington decided to cut off
the flow of federal funds until
Corinthian could back up their
claims of job placement.
- The way financial aid typically
works, it's almost
like they give the institution
a credit card, and they can...
In anticipation of getting that
bill paid by the Department
of Education,
they can spend the money in advance.
What the Department of
Education said is basically,
it took away the credit card and
said, "No, no, we need
to verify your expenses
before we get reimbursed."
- I think we're in the peak
of the highest amount of worry
right now.
Trace Urdan was closely
monitoring the company.
He told me that for most of
the previous year, the CEO
of Corinthian, Jack Massimino,
was downplaying his problems.
- He would say,
"It's gonna be fine, you know,
we've put these things in place
and it's all gonna be good,
and you know,
the students are coming, trust me."
They're always extremely
optimistic, right?
So it's the job of people
like me to try to filter that
a little bit.
Did you ask that question?
"Are you defrauding students?"
- Well, no, I probably wouldn't
have phrased it that way.
Maybe you should have.
- Maybe I should have.
Maybe I should have.
I then asked him about the
Department of Education
withholding funds
from Corinthian.
- I knew something the
Department didn't know,
which was that withholding
that much cash from them would
precipitate a crisis, right?
So I knew that part.
What I didn't see coming was
that the Department would
actually do that to them.
Without the influx of federal
funds, top executives
at Corinthian saw the writing
on the wall and prepared to file
for bankruptcy.
- For-profit college provider
abruptly closes its campuses...
On the morning of April
26, 2015, thousands of
students woke up
to hear the news.
- As of today, school's out for
good at Corinthian Colleges.
It was the largest college
shutdown in history.
- Students are displaced
after the sudden closure of 28
Corinthian College campuses.
- School is over for thousands
of Southern California
students.
Students were left
wondering what would happen
next.
- Corinthian Colleges goes
under, leaving 1.2 billion,
with a "B," in federal
student loan dollars in play.
And the people who did it are
on their estates, are on their
yachts, enjoying the
fruits of their labor.
- That's one of the concerns.
These are federal loans
these students have.
So as a taxpayer,
why shouldn't I be concerned about this?
Officials at the Department
of Education were
trying to determine who
should absorb the loss.
- for all those students who
had gone through Corinthian
these last couple years.
- Well, exactly,
some of whom may be carrying quite a bit
of debt and, as we now know,
probably have very poor job
prospects relative to
what they were promised.
- There were so many
students, so many campuses.
There was no policy that could
really handle that sort of
scale.
Again, remember the times when
campuses had closed before.
We're talking, you know,
a few hundred students, right,
a couple of campuses.
And the Department of Education
would be on the hook for the
billions of dollars that those
students might have outstanding
in loans, and they were not
particularly enthusiastic about
taking on that sort of burden.
Instead of refunding the
students, the Department
midwifed a sale of 53
Corinthian campuses.
- What they told me at the time
was, "We were afraid to turn
loose on the economy,
or into community colleges and other
universities,
so many students at one time."
Too big to fail?
- Sadly,
that's what it sounded like.
I never bought it from the
start; just didn't make any
sense.
The buyer was a
non-profit specializing
not in education,
but in student debt collection.
Well, I don't get it.
I don't get it.
So this debt collector that
collects bad debt for the
Department of Education buys
a whole slew of Corinthian
Colleges?
- Yes.
With the Department of
Education, which is the
regulator and the enforcer and
the sheriff in town, actually
stepping in to broker the deal.
- We are Everest.
We are Wyotech.
We are Zenith Education Group,
a non-profit that's putting
students' success first.
The CEO of Zenith and the
General Counsel of the
parent company, ECMC,
agreed to sit down for an interview.
You raised a lot of eyebrows
when you made this deal.
You're a debt-collecting
company, but you're going into
the business of education in a
sector that is rife with high
debt load.
- Well, the ultimate proof
will be in the pudding.
Our goal is to make sure that
we can provide an affordable
education of high quality so
that when a student comes out
of one of our programs,
they have no more than $4,000
or $4,500 in debt.
We think that's affordable for
a job that pays 20, 25 bucks
an hour.
So are we there yet?
Not quite,
but we've made a lot of progress.
But your experience
was in debt collection.
What experience did you
have in running a school?
- In the particulars of running a
school, we brought folks in
from the outside that
had that experience.
So ECMC had no experience
in running a school,
let alone a set of colleges.
- That's correct.
I then asked them about
a report Zenith had
commissioned that detailed all
the problems with Corinthian.
And I quote, talking about
Corinthian, "Students were
misguided, resources
misdirected, questionable loans
issued, and admissions
departments pushed to recruit
anyone with a pulse."
So I want to talk about these
abuses and what you've done
to change things.
- We commissioned the IDEO
report because we want to be
different than the
previous owners.
You know, from the point that
we acquired these schools in
February of 2015,
fully 60% of those employees are no longer
with us.
The senior management,
completely redone.
As I mentioned before,
completely new marketing team.
You say that your
entire marketing team
has been replaced.
What about the
compliance department?
- So our senior leadership,
all but one never drew a dime
of pay from Corinthian,
and that includes the person
who runs compliance.
So we are in the process really
of reinventing the leadership
of Zenith Education.
While it's true that the
top manager for compliance
was replaced, nearly one third
of the staff in that department
remains in place.
Zenith also kept most school
administrators and teachers.
Does it concern you that Zenith
is operating Corinthian with the
same personnel that were there?
- Well, the key thing is
that schools that Zenith runs
have to serve students well.
There's a monitor in place to
help ensure that that occurs,
and we're gonna do all we can to
make sure that they're serving
students well.
How would you grade the
Department on monitoring
and investigating the abuses
that we all know have gone on
at these for-profit schools?
- So I would say an incomplete.
I think we are making progress
certainly compared to where
we were when the administration
began, but more to do.
- Brand new regulations will
hold these schools accountable
for the value of their degrees.
In 2015, after five years
of legal battles, the
Obama administration finally
implemented a gainful employment
rule.
Under this new rule,
schools have three years to prove that
they placed students in jobs
which pay enough for them
to afford their student loans.
- It'll take years for the
final judgment to come in.
So we're gonna regulate
through the rearview
mirror?
- Absolutely.
This was one of my main
objections to what they did.
The American public are
not supposed to be lab rats
on whom we experiment
and then pass judgment
on providers post facto.
You wouldn't do that with food.
You wouldn't do that
with drug safety.
The assumption is that the
burden always ought to be on the
provider to put enough evidence
on the table that what they're
selling the public,
what they're financing with public
dollars, is wholesome and at
the very least not damaging.
The Department of
Education has also launched
a new enforcement unit
promising to more closely
monitor for-profit schools.
And this past month,
the department sanctioned
another school
- The students at ITT Technical
Institute fear that school
may not be around much longer.
- ruling today that ITT
Technical Institute can no
longer enroll new students
who use federal loans.
I spoke to one ITT
student who told me he had
already borrowed $20,000 to
train as an architectural
designer.
- I had to get in debt.
I don't have no rich uncle
who's gonna give it to me
with a silver spoon.
Even though it might cost a
little money in the long run,
it'll still be worth
it, you know?
I won't have to be dependent
upon welfare or anything like
that as I get older.
I'll have a trade under my belt.
Well, you haven't heard
that the school is having
any troubles or might close,
or might be closed down by the
government?
- Well, I hope I'll be able to
learn the program before they
do that,
because I really need to learn it.
- Without warning,
the school closed its doors.
Just last week,
ITT closed, leaving
35,000 students in the
cold, including James Jones.
- ITT Technical Institute
is shutting down for good
Coming up next on
this special edition
of Frontline,
we've followed Omarina since she was in
middle school.
- A middle school intervention
is not sufficient in itself.
Through the hard times,
and the good.
"The Education of
Omarina" begins right now.
This is the story of
six years in a life.
And an attempt to stem the
dropout crisis in America.
When we first met Omarina
Cabrera, she was a middle-school
student in the Bronx,
and she had been struggling.
- Sixth grade was a hard year
because me and my mom got
evicted.
I felt shattered.
That was the home that
I had for my whole life.
I didn't know what was gonna happen
next, and that period
of not knowing wasn't something
that I felt comfortable with.
I felt this inkling in me that
I would never want my children
or anyone else to
experience this.
Shuffled between
relatives' apartments, some
without even electricity,
Omarina suffered another loss.
- When I was really young,
my father walked out for
whatever reason.
I finally got in touch with him.
Just before we were about to
talk and I was about to go see
him, he had gotten a stroke.
I see my father for the first
time and it was in a casket.
With her home life in
chaos, Omarina's school life
began to suffer.
She was showing up late or not at
all, starting down a path
that so many other
young people take.
Every year, hundreds of
thousands of students fail
to finish high school.
- Even kids in the most dire
circumstances really want
a future.
They just need to
have a path to it.
Robert Balfanz,
one of the nation's top education
researchers, had been searching
for that path for 15 years by
studying kids who were
dropping out of high school.
Then he realized that the key
moment when kids begin to go
down the wrong path was
actually in middle school.
- If in the middle grades,
you develop habits of not
coming to school regularly,
of getting in trouble or failing
your courses,
you bring that with you to high school.
What he discovered was
that if a sixth grade child
in a high poverty school is
absent more than 20% of the
time, or fails math or English,
or receives an unsatisfactory
behavior grade in a core course,
there is a 75% chance that they
will drop out of high school
unless there is decisive
intervention.
- It may seem far less than
rocket science, but it's
something that, in fact,
schools by and large have not
paid attention to.
But Omarina's school,
Middle School 244, did.
It had recently implemented
a program based on Balfanz's
research, designed to catch
faltering students like her.
Every week, statistics were
collected and reviewed by a team
of counselors and teachers,
including the principal,
Dolores Peterson.
- Let's go to 802.
Omarina.
How is Omarina doing?
They would flag the
students most in need.
- Her mother's not even in
the United States right now.
She was in a shelter not that long
ago, then they were
evicted.
I took her home one day,
and it's on the other side
of the world, you can say.
- I can't tell you how much
I worry every time she leaves
this building.
- When she leaves this building,
you know, she's on her own
In cases like Omarina's,
they'd organize an intervention.
Catherine Miller was
Omarina's homeroom teacher.
- So once Omarina was
identified, it was imperative on
my part as the homeroom teacher,
in consultation with the
guidance counselor,
to discuss why she was coming in late
so many times.
- They came to me and they asked
me, "What's wrong?
You've been late a lot.
Something has to be wrong."
And that's when I told Ms.
Miller that I was evicted.
- Your mother needs to feel
safe, or she needs to feel good
about where you are, as do
you, and the best we can do
right now is...
We can compile thousands of
numbers about who's failing this
or who's passing that,
but if there's no response to that
data, it's all for naught.
It became clear that a
chaotic home life was the
source of Omarina's problems at
school, and she needed targeted
support.
- You're gonna take
this one today.
The team helped her figure
out routes to school
from ever changing addresses,
got her a bus pass and books.
- It's that sense of
shepherding is what the kids
need to know that an adult not only
cares, but the adult
can actually help them.
- How's it going at home?
- I think it's
calmer than before.
- And your brothers?
- I had a lot of
different things going on.
I had my brother, who is so
smart, and he was just like me.
He's my twin.
My brother began to be exposed
to a lot of the things that were
out there, and not only
him, but a lot of us were.
Not a lot of kids make the right
choice, and that's happened
a lot of times in the
Bronx for a lot of people.
In the summer after sixth
grade, Omarina's twin,
Omarlin, started hanging out
on the streets and getting
in trouble.
His mother had him moved
to another school, thinking
he'd be safer in a
different neighborhood.
But when we met him at the end
of eighth grade, Omarlin was
rarely attending school,
and his high school plans
were uncertain.
- Where am I gonna
go to high school?
I don't know.
I haven't gotten a letter
yet, of acceptance.
- The fact that he got involved
with the streets, he just began
slipping off the mountain-- slipping
off, slipping off,
slipping off-- and
it's really sad.
Without everybody,
that's what I would be.
The fact that I go on to high
school, that wouldn't
matter to me.
"I can get my GED later,"
that's what I would say.
Soon, Omarina was achieving
near perfect grades
and attendance.
Her teachers encouraged her
to apply to competitive prep
schools beyond New York City.
- I thought that
was your best essay.
Read it to me again, I love it.
- "Typically, young adults
look upon a political figure
or someone in their life
for guidance and support.
I, on the other hand,
seem to find this inspiration within a
black and white street sign.
Imprinted on the sign
are the words 'One Way.'
It taunts me with the inevitable
reminder that coming in
is not the obstacle,
but making it out."
When the acceptance
letters began coming
in, they included a scholarship to
Brooks, an exclusive private
boarding school
in Massachusetts.
- So what did you decide?
Which school did you choose?
- After giving it a lot of
thought, I went with Brooks.
- So are you excited?
- Yeah.
- I know I am.
How does it feel, Ms. Miller?
- It's very humbling, um,
and I'm incredibly proud
of your accomplishments.
- Oh, Ms.
Miller, you're gonna make me cry!
Aw, come here.
We checked in on
Omarina halfway through
her sophomore year
at the Brooks School.
- I remember first getting here.
I was nervous that I was
way too different to fit in.
- We pray for our families.
- A lot of kids here are very
wealthy, and their parents are
very important people.
I go back to an apartment
in the middle of the Bronx.
- And we pray for our school,
that we may always be a home
for innocence and truth.
- There's times when you notice
subtle comments because people
haven't been exposed
to certain things.
I think they are genuinely
curious and genuinely want
to know how I do my hair in the
morning, or do I think
in Spanish, or, um...
I don't know, was I born here?
In this new environment,
the pressure on
Omarina wasn't just social.
In the beginning, she says,
she struggled to keep up in class.
- 1-1 equals 3.
Look at the last digit.
- I remember getting my first
quiz back and almost throwing up
because I had a 16%.
And I think that was the moment
when I realized, "Yeah, I'm not
getting by if I don't work
really, really, really hard."
During those times when, you
know, it feels like a little bit
too much, I feel like I do have
a strong faculty to support me.
And Ms. Miller,
who is always with me regardless
of where I am.
- Good morning.
- Good morning.
- What classes do you
have this morning?
- I have algebra two,
then I have a chem test.
- I felt as though it was
really imperative to keep very
constant contact.
- Okay, bye, Ms. Miller.
Love you!
- Just to make sure the
adjustment was going well, but
also knowing that many people
were rooting for her to be
successful here in the Bronx.
- So, what if I asked you
to graph this thing that's
changing over time?
- Well, zero is there,
so it would go away from it,
so it would be negative.
- I caught up and I got
good midterm grades.
I'm excited about
that, and I'm proud.
- My sophomore year,
now this is a good year.
You're kind of just floating.
I just need to keep looking
ahead and just keep going,
keep moving a step at a time.
But just as Omarina
was getting on track at Brooks,
she received a disturbing call.
- It was a Tuesday morning.
I couldn't ignore the feeling
that I had in my stomach.
- Why are we so powerless
to save the people we love?
She found out her
twin brother Omarlin
had been shot.
- I immediately
thought: is he dead?
Just tell me if he's dead.
- I want to tell
you why I did it.
The police said the
shooter fled the scene.
Omarlin survived.
- I was scared and sad and
disappointed and worried,
but I can't show that to him
because he doesn't need that.
He needs someone there
to be strong for him.
With their mother frequently
not at home, Omarina
was making regular trips to the
Bronx, juggling the demands of
her schoolwork and her sense of
responsibility to her brother.
- Hey!
Where were you?
I try very hard not to
ever cry in front of him.
I hope he does realize that I do
care, and that's why I do
the things I do and that's
why I always nag him.
So you get transferred,
or are you still in the process?
What's gonna happen with that?
- I don't know.
I'm just waiting.
- It's not gonna take
long, right?
- No, hope not.
Omarlin was reluctant
to talk about what was
going on in his life,
or about the bullet that could have ended
it.
- It came from this way into my
arms, and then
under my upper ribs
on the left side
close to my heart.
I don't know, I could have
died, so, I thank God
that I'm not dead.
And I could still be here.
So I just have fun.
I know she's going to
have a bright future, too.
Because she goes to school.
She got her scholarship.
That's good.
I don't know,
I have to have a good life
and a good job and
kids and be married.
That's it.
Omarina was finishing
her sophomore year
at Brooks, Omarlin, at age 16,
was still in the ninth grade.
At the time of filming,
he had only shown up for school five
times all year.
In the coming months,
he would be arrested for carrying
a knife,
and for possession of marijuana.
- I handle stress
in different ways.
When I get to Brooks,
I use it as almost my getaway.
I can't just think and think
and think and think about all
the things that are going wrong.
I just think of all the things
that might be going right,
you know?
We returned to Brooks two years
later, after a
difficult junior year that would
determine where, or even if,
she would go to college.
- What is oportet?
Remember from Latin 20,
you had that list of all
impersonal verbs?
- An indirect statement.
- Indirect statement.
- In the beginning,
I definitely thought I was gonna
have one of the best years.
But junior year ended up being
one of the hardest years of my
life.
I think the clouds started
gathering when we found out that
Omarlin was going
to be having a baby.
And I just remember thinking,
like, "What did you do?"
I just thought back to, like,
our childhood and how much our
parents, you know,
affected the trajectory of our lives.
And I just...
I just feared that he might not be able
to physically be there
because he's in a frenzy
to provide for her.
And my fears came true
when he was arrested.
Omarlin plead
guilty to attempted
robbery in the first degree
and was sent to Rikers
Island to await sentencing.
- I knew that my other half,
my brother, the person that I love
most in this world,
was going through something so terrible
that I could never even imagine.
- All right,
so what is the anti-derivative of 9?
- All of this anxiety,
you know, caused me
to lose focus in school.
- We're gonna get back to
finding the volume of the
cylinder,
but we're gonna do it through...
- Junior year's important because those are
the grades that are sent out to colleges.
I was, like, having panic
attacks just thinking about,
like, "Wow, my grades aren't
what they're supposed to be."
Getting up out of
bed was so difficult.
Just that day felt
like too much for me.
- I couldn't fathom the idea
that this amazing young lady who
had overcome so many things and
is on the precipice of moving on
to the next stage of her life,
and that might all be gone.
I knew that an intervention
was absolutely necessary,
so I drove up to Brooks.
- I just stopped, because I saw Ms.
Miller with her "I'm going
to kill you" eyes.
She'd always say, like, "All
right, there's all these things
you can't control,
but what are the things that are bothering
you right now that we can fix?"
She got me this poster for my
wall, more frames to put
pictures of, you know,
the people that I love.
Just that feeling that I had,
you know, people to catch me
whenever I did fall just gave
me the strength to keep moving
forward step by
step, step by step.
While all this was going
on, Omarina,
with the help of Ms.
Miller and the staff at Brooks,
was also applying to colleges.
- That last document that GW
needs, we need to take our
efforts to the next level in
terms of getting this thing
done.
The only way she could
afford to go was with a
generous financial aid package.
Her first choice was George
Washington University.
- I was scared because the
ending of my junior year
wasn't what I wanted it to
be in terms of academics.
- There was a possibility that
the grades were still gonna
overshadow her accomplishments,
which was so disheartening
to think about.
I wasn't sure what we were
gonna do if she didn't have
any financial aid.
The answer came when she
was home for December
break.
- Hi!
- Hey.
- How are you?
You look so pretty.
- Thank you, so do you.
She waited for the news
at her old middle school.
- I'm just a big bunch
of nerves right now.
Anything can happen, basically.
The email comes at 5:00?
At 6:00.
- Okay.
- I got an email yesterday
saying that they're gonna email
it to me at 6:00.
- Okay, y'all are taking
too long for this.
I need to know.
It's been nine minutes.
Oh, my God, I got in!
Oh, my God, yes!
And the money.
I don't know, I don't know,
I think they might send in
the money later.
I'll cry if I get full finan...
I'll cry real tears.
I don't cry, I try not to
cry, but I'll cry real tears.
- So, I just asked if we can
see a snapshot of the financial
aid letter.
Wait, wait, wait,
he just emailed me back.
- What did he say?
- "I can tell you that it is
an extremely generous package."
"And she should have no
issues making it work
next year and beyond."
Okay, now I feel better.
Now I feel better.
I feel better, I feel better.
- I'm gonna cry.
- It's okay!
It's okay.
Oh, thank God.
- Okay.
Oh, God, I don't ever cry,
but this is cry-worthy.
Oh, my God, thank you so much.
- Lives in poverty are fragile.
You could be doing great one
week one year and then something
else hits, and if you don't have
supports, you can still crumble.
Middle school intervention is
not sufficient in itself, but
it's essential that it starts
there, and we can see that
in these two kids'
life trajectories.
Although Omarina got some
special advantages, you don't
need the boarding school; you
need a decent high school.
Two to three adults will get you
all the way through high school
graduation and on a
path to post-secondary.
Her brother tragically
represents the other side
of the story.
If we don't solve the problem
or change the behavior that's
leading a sixth grader to miss
a month of school or fail math
and English,
it doesn't self-correct.
In fact,
we clearly see it gets worse.
Around the same time
that Omarina was accepted
to George Washington,
Omarlin was sentenced to three-
and-a-half years in prison.
- One of the people who were
testifying against him, in
their report, they said that
Omarlin had told them, like,
"I'm sorry that I'm doing this.
I'm doing this for my daughter."
He doesn't get to see a big
portion of her early years,
and his daughter's
growing up pretty fast.
It just really, really
messes with me, like,
knowing that I'm moving on
to a good part of my life.
You know,
I'm graduating high school.
I've always felt like he's
lagging behind me, and you know,
I don't know how to
get him on track.
But this is something different
in the sense that, um, this is
the rest of our lives.
This is no longer, you know,
school; this is his life.
No one in my immediate family
has graduated high school
and gotten into college.
However,
I believe I will be the first one.
And they will be excited
and thrilled, and they'll be
proud of what I've become.
- To be that full of profound
perspective and wisdom at this
stage in her life leaves me
believing that there are no
limits to what she might do
for, and share with, the world.
It is my privilege to present
the Trustees' Prize to Omarina
Cabrera.
Congratulations.
- Thank you.
- Congratulations to
the Class of 2016.
NEW WORLDS AND IDEAS.
SUPPORT YOUR PBS STATION
- Tonight on - Frontline,
two reports about
education in America.
- The closing of ITT Tech
is affecting students...
First, for-profit colleges
and allegations of
fraud and predatory behavior.
- They were targeting the most
vulnerable and desperate people.
Frontline investigates
the rise and fall
of this once booming industry.
You have termed these
students that are signing
up for these courses as
"subprime borrowers."
- Yeah,
that's a fair characterization
of the types of students
that are being served.
And later, we've been
checking in on Omarinan Oa
since middle school,
where a dedicated group of educators
helped to turn her life around.
But even more amazing,
they stuck with her.
- No one in my immediate family
has graduated high school
and gone into college.
However, I believe I'll be the first
one, and they'll be
excited and thrilled and they'll
be proud of what I've become.
These two stories on
this special edition of
Frontline.
A SUBPRIME EDUCATION
In the spring of 2012,
Hollie Harsh and Brian
French were both homeless and
looking for ways to improve
their lives.
- We were addicted to
methamphetamine for a while,
and we ended up in a bad place,
going homeless in a tent.
And it was like
that for four years.
We just one day
said, "We're done."
We had enough.
- I had started getting online,
doing some research about
government grants, and I put in
my email address, phone number,
all the information
that they asked for.
Brian had stumbled on a
lead-generating website
that collects information
from visitors.
Within 24 hours,
they got a sales call from Corinthian
Colleges, one of the largest
for-profit schools in the
country.
He has a deep accent, and he
tells me that they will grant
me a decent amount of money.
And I thought,
"We owe this to the kids to move forward
in our lives."
The recruiter offered
Hollie and Brian money
if they toured a few branches
of Corinthian, including Heald
College in Concord, California,
which was near their encampment.
- I felt that, like,
we almost didn't have a chance to say,
"No, let's think about it."
And I do...
If I remember correctly,
it was only three or four days that
we started school after that.
- And you said to
them, "I'm homeless"?
- Yes.
And she was like, "Oh, that's
fine, a lot of our students are
homeless in the same situation."
In order to enroll,
Hollie and Brian signed up for
federal student loans totaling
$30,000, all to be paid after
they graduated.
But they had no money for
housing, so they simply moved
their tent and belongings to
a vacant lot next to campus
and began going to class.
- Welcome to my school!
Around 1.8 million
students are enrolled
in for-profit colleges across the
country, in mega-schools
like Argosy, DeVry,
and Grand Canyon University.
You've got $60 million invested?
I started reporting on this
sector back in 2009 during the
Great Recession.
How big can you go?
With unemployment up,
Americans were choosing to go back to
school in record numbers.
- Well, the irony is, Dylan,
that when the economy is tough
is when people actually look
to go back to school and either
upgrade their skills or maybe
complete their B.A., so...
Back then,
I had looked at the University of
Phoenix, one of the largest
universities in the world.
At its peak, Phoenix had
enrolled over 600,000 students.
I spoke to a former
high-ranking executive.
- For the first 15 quarters,
we broke records and earnings
every quarter.
And instead of starting classes
in September and January,
we started classes in January,
February, March, sometimes two
in April.
If we had more students
than we could handle,
we'll build another site
and handle some more.
We built campuses by a freeway
because we figured that's where
the people were.
So if you went by any major
freeway in the Southwest,
you're going to find a
University of Phoenix campus.
We put schools 20 minutes apart
because that's about as far as
people could drive at rush hour.
How much could a
college administrator
for University of Phoenix make?
- The sky was the limit.
I shouldn't say this.
I shouldn't say this.
It's a free country.
- I understand, I understand.
But it's boasting,
and I won't say it.
Well,
in terms of how much you made,
you did very well?
- We did very well.
I did better than
I ever imagined.
- Education stocks rallied
today, including Corinthian
Colleges.
In an otherwise flat
market, for-profits had
taken off.
- Education stocks are moving
to the head of the class today.
- $24 billion, that's how much
the biggest for-profit colleges
took in last year in federally-
funded student aid money.
- Not just a job
search; a journey.
Not just an interview.
For-profits were spending
big money enticing
students to sign up for loans.
- Whatever your business card
says, you're in the business
of you.
At the time,
ad costs rivaled those
of multi-national brands.
- Which university
revolutionized education
in America to reach
the working learner?
- You thinking about
going back to school?
- Yes.
- Excellent,
what are you thinking about going for?
The industry also employed
an army of salesmen
and recruiters.
- The for-profits need to
continually add students.
When you think about it,
for the University of Phoenix,
for example, in order to grow
on top of the folks that are
leaving, you've got to add the
equivalent of, you know, one
to one-and-a-half
Ohio States per year.
- To satisfy their shareholders
on a quarterly basis, they've
got to increase
their enrollment.
They have to aggressively
recruit marginal students.
- Because only one thing
counts in this life.
Get them to sign on the
line which is dotted.
- Glengarry Glen Ross.
It's that sort of a heavy
commercial environment in which
you say whatever you need
to say to close the deal.
The pressure to grow
encouraged dubious
enrollment practices.
Tami Barker was an enrollment
advisor at Ashford University.
They used to tell us,
you know, "Dig deep.
Get to their pain.
Get to what's bothering them
so that that way, you can
convince them that a college
degree is going to solve all
their problems."
- The problem is that for many
of these students, they think
they're talking to an admissions
advisor, they think they're
talking to someone with some
sort of ethical standards,
and they don't realize that
they're talking to a person
who is selling them something,
and that they might be
better off to just walk away.
Many students assumed they
were getting a quality
education and a useful degree.
- I love Grand Canyon and the
community that it represents,
and also the
Christian background.
- This school is just perfect.
It's night classes.
- I'm studying merchandise
product development, and it is
the coolest thing I've
ever done in my life.
I love it.
In 2010, the top
Washington lobbyist for the
sector told me it was all about
providing new opportunities.
- We educate the students that
traditional higher education
has given up on.
Traditional higher
education has become a very
socio-demographically elite
group of people, so the only
options lower-income students
and working adults have
is either to go to a community
college, some of them can go to
minority-serving institutions,
and our option is the third
option.
But for years,
for-profits had been charging
students nearly five times
as much as community colleges
and gotten the bulk of their
revenue, up to 90%, from student
loans and grants.
- This is the most heavily
subsidized private business
sector in America.
No one compares.
Defense industry, agriculture?
Don't hold a candle
to these boys.
- Hey ladies, you have to hold
the household down, right?
Why can't you get an
education for yourself?
You still can work,
you can still take care of your kids.
I did it, you can do it too.
But not all the promises
were paying off.
- The whole world opens up for
you, but you got to do
something right now.
You can't wait.
Back in 2010,
I met three students who had enrolled
at Everest, part of the
for-profit giant Corinthian.
They were hoping to become
nurses, but it wasn't going
according to plan.
- They said that we were going
to be making $25 an hour, and...
- $25 to $35, they told me.
So I was, like, "Okay."
And they're going
to find us a job.
- They're gonna find us a...
- They're going to place us.
- I got my license in December of
'09, and I've been on
countless interviews.
And they all ask if I've ever
been in a hospital, and I would
have to tell them we never
set foot in a hospital, ever.
We went to a museum of
Scientology for our psychiatric
rotation.
- Our pediatrics rotation,
we went to a day care.
- Oh, yeah, that was our PEDs.
We went to a day care.
After our report aired,
John Oliver picked up
the story.
- Job hunting might be a little
difficult, as students from a
Corinthian College
nursing program found.
- We went to a museum of
Scientology for our psychiatric
rotation.
- What?
Scientologists do not
believe in psychiatry.
- This is the next big
scandal in America!
Washington also started
paying attention.
- This sort of reminds me of
where we were two years ago
with liar loans and no doc loans
in the housing market, where
people started accepting people
who couldn't prove their income,
couldn't prove employment,
but we sold them a $450,000 house.
And in a handful of hearings,
some for-profits were
accused of employing false or
misleading advertising and using
illegal recruitment efforts.
- 15 of the 15 schools the GAO
investigated found instances
of fraud, deceptive practices,
or made misleading statements
to prospective students.
In this hearing,
they unveiled hard evidence.
- And if you can just sign
and date right there for me.
- Okay, now, I'm not signing
up for the school right now?
- Yeah, you're actually
reserving your seat.
- Oh.
I was hoping I could talk to
the financial people first.
- No, they won't even
let you back there.
- Am I on the hook
for the $38,000?
- The thing about those tapes
is that it was really hard
in the face of this evidence
to deny that there was
a problem there.
- You should be ready to make
the investment of time and money
necessary to get you to where
you should be at this point.
But you're not.
What are you really afraid of?
Congressional investigators
also found that
for-profit schools were failing
to prepare students for the
workforce.
- Too many of the students who
go to these schools are coming
out with nothing other than
big debt and no education,
no gainful employment at all.
In 2010, the Department
of Education attempto
regulate the industry by
implemg some new rules.
- We're going to start
with gainful employment.
But the department ran
into intense resistance.
- The lobbyists for the
for-profit industry and
unfortunately many members
of Congress challenged those
regulations,
critiqued those regulations.
- This so-called "gainful
employment" regulation is
another example of this big
federal government run amok.
- They were overwhelmed.
They ran into this withering
artillery fire of lawyers
coming after the administration
and beat them back.
- Well, they're doing
everything they can to screw up
education.
- The fact that the sector
has declared an existential
emergency around this,
the sector has every lobbyist
in town, former members
of Congress on its payroll
to defeat this, really kind of
speaks volumes about the level
of corruption and the kind of
feeding frenzy we're talking
about.
- when the House of
Representatives voted to
prevent the Department of
Education from implementing
tough new rules that could
deprive certain schools from
federal funding.
- former ventures:
Trump University.
It's been the subject
of increased scrutiny.
Today, allegations of
predatory behavior and negative
press continue to
dog the industry.
- The Clintons got filthy rich
off a for-profit university
that took advantage
of many poor people.
But since I last reported
on these schools,
a lot has changed.
- Are the for-profit schools
value stocks or value traps?
- One of the big losers
though, that was Apollo Group,
that operates the
University of Phoenix.
For-profits are no longer
the darlings of Wall
Street,
and enrollment is way down.
In San Francisco, I talked with
Trace Urdan, a banker who kept
buy ratings on several
for-profits for much of the last
decade.
They are into decline, why?
- Mostly market conditions.
The economy recovers and
everybody finds a job, and then
all of a sudden, you know,
that trade-off that said, "Well, hey,
wait a minute, why should I
borrow all this money so that
I can earn the same amount of
money that I can earn at Jamba
Juice?
That doesn't make any sense."
You have termed these
students that are signing up
for these courses as
"subprime borrowers."
- I knew that was
gonna come out.
Yeah.
They were subprime borrowers.
I mean, that's a fair
characterization of the types of
students that are being
served, right?
These are unsophisticated
students that have a great deal
of risk.
Now, that's not true across the
board with for-profit education,
but certainly when we're talking
in the context of Corinthian.
Corinthian.
That's the for-profit chain
that included Everest College.
It's the school those three
nursing students had attended.
We looked one of them up,
Martha Salmon, and found her living
in Southern California.
Martha had paid back the $28,000
she owed in student loans,
but at a cost.
- That was money that could
have gone towards my house
or for my kids.
It could have gone a
lot of different ways.
But I just wanted
to get rid of it.
Her degree from Everest
never resulted in
nursing work,
so she was forced to start over.
- I got my R.N.
from Citrus College.
It's a community
college in Glendora.
And from day one,
the start of that school was totally
different from Everest.
There's really no comparison.
For our psych rotation at
Citrus, the R.N. program,
we went to a psych hospital.
And we were there for four
weeks, and we were able to
interact with the patients.
We followed the nurses
while they gave medication.
It was at an actual psych
hospital; it wasn't a museum.
- And how much did it cost you
to get a degree from a community
college?
- My R.N. cost $3,000.
But the education that you
receive, the money that you save
is... there's no comparison.
Stories like Martha's
got the attention of,
California's Attorney General.
In 2011, Kamala Harris
started investigating.
- As we started diving into it,
it became clear that Corinthian
was engaged in extremely
predatory behavior and conduct.
And so we sued.
This morning,
my office filed suit against Corinthian
Colleges, and in what can only
be described as a for-profit
college predatory scheme.
A lot of what you charged
was that there was
a misrepresentation of
job placement rates.
- Absolutely.
Convincing students that if you
sign up to receive an education,
we will ensure you
will also get a job.
That was all, uh...
I'm gonna say a polite term:
that was wrong and inaccurate.
It was B.S.
- It was B.S.
It absolutely was.
Harris based her complaint
on interviews with
over 100 employees and students,
including Hollie Harsh and Brian
French, the homeless students
at Corinthian's Heald College.
- That's a pretty girl!
Hi!
Hollie and Brian had
dropped out of Heald
in their third semester,
but the bills kept on coming.
- And I was just like,
"How am I going to pay this?"
- Yeah,
we still got bills coming out.
They still want their,
what is it, $288 a month
that they want to get from us.
- For you.
- Oh, for me alone.
- Can you afford that?
- No, not really.
We're living paycheck
to paycheck as it is.
Kind of what I say I got from
Heald was a $16,000 t-shirt.
That's what we got.
Hollie Harsh, Brian
French, homeless, recruited
to sign up for government
loans to go to school.
Is that an extreme case?
Are they outliers?
- Anyone is a target.
They were targeting the most
vulnerable and desperate people,
people who felt that they
were without resources.
This was by their own
marketing materials.
How do you explain that
there are people that would
want to take advantage
of people like that?
- It's greed.
- Everest College is accredited
by the West Coast Commission
of Non-Accredited Schools.
You can learn anything.
Corinthian would fast
become the poster child of
predatory for-profits.
Videos lampooning Corinthian
flooded onto YouTube.
- You're probably just sitting
at home watching Maury.
I like Maury; I want to
know who the daddy is too.
Make a decision, make a choice.
You gotta call Everest.
You still here?
By 2013, California's Attorney
General would share her
findings with the
Department of Education.
Soon after, officials in
Washington decided to cut off
the flow of federal funds until
Corinthian could back up their
claims of job placement.
- The way financial aid typically
works, it's almost
like they give the institution
a credit card, and they can...
In anticipation of getting that
bill paid by the Department
of Education,
they can spend the money in advance.
What the Department of
Education said is basically,
it took away the credit card and
said, "No, no, we need
to verify your expenses
before we get reimbursed."
- I think we're in the peak
of the highest amount of worry
right now.
Trace Urdan was closely
monitoring the company.
He told me that for most of
the previous year, the CEO
of Corinthian, Jack Massimino,
was downplaying his problems.
- He would say,
"It's gonna be fine, you know,
we've put these things in place
and it's all gonna be good,
and you know,
the students are coming, trust me."
They're always extremely
optimistic, right?
So it's the job of people
like me to try to filter that
a little bit.
Did you ask that question?
"Are you defrauding students?"
- Well, no, I probably wouldn't
have phrased it that way.
Maybe you should have.
- Maybe I should have.
Maybe I should have.
I then asked him about the
Department of Education
withholding funds
from Corinthian.
- I knew something the
Department didn't know,
which was that withholding
that much cash from them would
precipitate a crisis, right?
So I knew that part.
What I didn't see coming was
that the Department would
actually do that to them.
Without the influx of federal
funds, top executives
at Corinthian saw the writing
on the wall and prepared to file
for bankruptcy.
- For-profit college provider
abruptly closes its campuses...
On the morning of April
26, 2015, thousands of
students woke up
to hear the news.
- As of today, school's out for
good at Corinthian Colleges.
It was the largest college
shutdown in history.
- Students are displaced
after the sudden closure of 28
Corinthian College campuses.
- School is over for thousands
of Southern California
students.
Students were left
wondering what would happen
next.
- Corinthian Colleges goes
under, leaving 1.2 billion,
with a "B," in federal
student loan dollars in play.
And the people who did it are
on their estates, are on their
yachts, enjoying the
fruits of their labor.
- That's one of the concerns.
These are federal loans
these students have.
So as a taxpayer,
why shouldn't I be concerned about this?
Officials at the Department
of Education were
trying to determine who
should absorb the loss.
- for all those students who
had gone through Corinthian
these last couple years.
- Well, exactly,
some of whom may be carrying quite a bit
of debt and, as we now know,
probably have very poor job
prospects relative to
what they were promised.
- There were so many
students, so many campuses.
There was no policy that could
really handle that sort of
scale.
Again, remember the times when
campuses had closed before.
We're talking, you know,
a few hundred students, right,
a couple of campuses.
And the Department of Education
would be on the hook for the
billions of dollars that those
students might have outstanding
in loans, and they were not
particularly enthusiastic about
taking on that sort of burden.
Instead of refunding the
students, the Department
midwifed a sale of 53
Corinthian campuses.
- What they told me at the time
was, "We were afraid to turn
loose on the economy,
or into community colleges and other
universities,
so many students at one time."
Too big to fail?
- Sadly,
that's what it sounded like.
I never bought it from the
start; just didn't make any
sense.
The buyer was a
non-profit specializing
not in education,
but in student debt collection.
Well, I don't get it.
I don't get it.
So this debt collector that
collects bad debt for the
Department of Education buys
a whole slew of Corinthian
Colleges?
- Yes.
With the Department of
Education, which is the
regulator and the enforcer and
the sheriff in town, actually
stepping in to broker the deal.
- We are Everest.
We are Wyotech.
We are Zenith Education Group,
a non-profit that's putting
students' success first.
The CEO of Zenith and the
General Counsel of the
parent company, ECMC,
agreed to sit down for an interview.
You raised a lot of eyebrows
when you made this deal.
You're a debt-collecting
company, but you're going into
the business of education in a
sector that is rife with high
debt load.
- Well, the ultimate proof
will be in the pudding.
Our goal is to make sure that
we can provide an affordable
education of high quality so
that when a student comes out
of one of our programs,
they have no more than $4,000
or $4,500 in debt.
We think that's affordable for
a job that pays 20, 25 bucks
an hour.
So are we there yet?
Not quite,
but we've made a lot of progress.
But your experience
was in debt collection.
What experience did you
have in running a school?
- In the particulars of running a
school, we brought folks in
from the outside that
had that experience.
So ECMC had no experience
in running a school,
let alone a set of colleges.
- That's correct.
I then asked them about
a report Zenith had
commissioned that detailed all
the problems with Corinthian.
And I quote, talking about
Corinthian, "Students were
misguided, resources
misdirected, questionable loans
issued, and admissions
departments pushed to recruit
anyone with a pulse."
So I want to talk about these
abuses and what you've done
to change things.
- We commissioned the IDEO
report because we want to be
different than the
previous owners.
You know, from the point that
we acquired these schools in
February of 2015,
fully 60% of those employees are no longer
with us.
The senior management,
completely redone.
As I mentioned before,
completely new marketing team.
You say that your
entire marketing team
has been replaced.
What about the
compliance department?
- So our senior leadership,
all but one never drew a dime
of pay from Corinthian,
and that includes the person
who runs compliance.
So we are in the process really
of reinventing the leadership
of Zenith Education.
While it's true that the
top manager for compliance
was replaced, nearly one third
of the staff in that department
remains in place.
Zenith also kept most school
administrators and teachers.
Does it concern you that Zenith
is operating Corinthian with the
same personnel that were there?
- Well, the key thing is
that schools that Zenith runs
have to serve students well.
There's a monitor in place to
help ensure that that occurs,
and we're gonna do all we can to
make sure that they're serving
students well.
How would you grade the
Department on monitoring
and investigating the abuses
that we all know have gone on
at these for-profit schools?
- So I would say an incomplete.
I think we are making progress
certainly compared to where
we were when the administration
began, but more to do.
- Brand new regulations will
hold these schools accountable
for the value of their degrees.
In 2015, after five years
of legal battles, the
Obama administration finally
implemented a gainful employment
rule.
Under this new rule,
schools have three years to prove that
they placed students in jobs
which pay enough for them
to afford their student loans.
- It'll take years for the
final judgment to come in.
So we're gonna regulate
through the rearview
mirror?
- Absolutely.
This was one of my main
objections to what they did.
The American public are
not supposed to be lab rats
on whom we experiment
and then pass judgment
on providers post facto.
You wouldn't do that with food.
You wouldn't do that
with drug safety.
The assumption is that the
burden always ought to be on the
provider to put enough evidence
on the table that what they're
selling the public,
what they're financing with public
dollars, is wholesome and at
the very least not damaging.
The Department of
Education has also launched
a new enforcement unit
promising to more closely
monitor for-profit schools.
And this past month,
the department sanctioned
another school
- The students at ITT Technical
Institute fear that school
may not be around much longer.
- ruling today that ITT
Technical Institute can no
longer enroll new students
who use federal loans.
I spoke to one ITT
student who told me he had
already borrowed $20,000 to
train as an architectural
designer.
- I had to get in debt.
I don't have no rich uncle
who's gonna give it to me
with a silver spoon.
Even though it might cost a
little money in the long run,
it'll still be worth
it, you know?
I won't have to be dependent
upon welfare or anything like
that as I get older.
I'll have a trade under my belt.
Well, you haven't heard
that the school is having
any troubles or might close,
or might be closed down by the
government?
- Well, I hope I'll be able to
learn the program before they
do that,
because I really need to learn it.
- Without warning,
the school closed its doors.
Just last week,
ITT closed, leaving
35,000 students in the
cold, including James Jones.
- ITT Technical Institute
is shutting down for good
Coming up next on
this special edition
of Frontline,
we've followed Omarina since she was in
middle school.
- A middle school intervention
is not sufficient in itself.
Through the hard times,
and the good.
"The Education of
Omarina" begins right now.
This is the story of
six years in a life.
And an attempt to stem the
dropout crisis in America.
When we first met Omarina
Cabrera, she was a middle-school
student in the Bronx,
and she had been struggling.
- Sixth grade was a hard year
because me and my mom got
evicted.
I felt shattered.
That was the home that
I had for my whole life.
I didn't know what was gonna happen
next, and that period
of not knowing wasn't something
that I felt comfortable with.
I felt this inkling in me that
I would never want my children
or anyone else to
experience this.
Shuffled between
relatives' apartments, some
without even electricity,
Omarina suffered another loss.
- When I was really young,
my father walked out for
whatever reason.
I finally got in touch with him.
Just before we were about to
talk and I was about to go see
him, he had gotten a stroke.
I see my father for the first
time and it was in a casket.
With her home life in
chaos, Omarina's school life
began to suffer.
She was showing up late or not at
all, starting down a path
that so many other
young people take.
Every year, hundreds of
thousands of students fail
to finish high school.
- Even kids in the most dire
circumstances really want
a future.
They just need to
have a path to it.
Robert Balfanz,
one of the nation's top education
researchers, had been searching
for that path for 15 years by
studying kids who were
dropping out of high school.
Then he realized that the key
moment when kids begin to go
down the wrong path was
actually in middle school.
- If in the middle grades,
you develop habits of not
coming to school regularly,
of getting in trouble or failing
your courses,
you bring that with you to high school.
What he discovered was
that if a sixth grade child
in a high poverty school is
absent more than 20% of the
time, or fails math or English,
or receives an unsatisfactory
behavior grade in a core course,
there is a 75% chance that they
will drop out of high school
unless there is decisive
intervention.
- It may seem far less than
rocket science, but it's
something that, in fact,
schools by and large have not
paid attention to.
But Omarina's school,
Middle School 244, did.
It had recently implemented
a program based on Balfanz's
research, designed to catch
faltering students like her.
Every week, statistics were
collected and reviewed by a team
of counselors and teachers,
including the principal,
Dolores Peterson.
- Let's go to 802.
Omarina.
How is Omarina doing?
They would flag the
students most in need.
- Her mother's not even in
the United States right now.
She was in a shelter not that long
ago, then they were
evicted.
I took her home one day,
and it's on the other side
of the world, you can say.
- I can't tell you how much
I worry every time she leaves
this building.
- When she leaves this building,
you know, she's on her own
In cases like Omarina's,
they'd organize an intervention.
Catherine Miller was
Omarina's homeroom teacher.
- So once Omarina was
identified, it was imperative on
my part as the homeroom teacher,
in consultation with the
guidance counselor,
to discuss why she was coming in late
so many times.
- They came to me and they asked
me, "What's wrong?
You've been late a lot.
Something has to be wrong."
And that's when I told Ms.
Miller that I was evicted.
- Your mother needs to feel
safe, or she needs to feel good
about where you are, as do
you, and the best we can do
right now is...
We can compile thousands of
numbers about who's failing this
or who's passing that,
but if there's no response to that
data, it's all for naught.
It became clear that a
chaotic home life was the
source of Omarina's problems at
school, and she needed targeted
support.
- You're gonna take
this one today.
The team helped her figure
out routes to school
from ever changing addresses,
got her a bus pass and books.
- It's that sense of
shepherding is what the kids
need to know that an adult not only
cares, but the adult
can actually help them.
- How's it going at home?
- I think it's
calmer than before.
- And your brothers?
- I had a lot of
different things going on.
I had my brother, who is so
smart, and he was just like me.
He's my twin.
My brother began to be exposed
to a lot of the things that were
out there, and not only
him, but a lot of us were.
Not a lot of kids make the right
choice, and that's happened
a lot of times in the
Bronx for a lot of people.
In the summer after sixth
grade, Omarina's twin,
Omarlin, started hanging out
on the streets and getting
in trouble.
His mother had him moved
to another school, thinking
he'd be safer in a
different neighborhood.
But when we met him at the end
of eighth grade, Omarlin was
rarely attending school,
and his high school plans
were uncertain.
- Where am I gonna
go to high school?
I don't know.
I haven't gotten a letter
yet, of acceptance.
- The fact that he got involved
with the streets, he just began
slipping off the mountain-- slipping
off, slipping off,
slipping off-- and
it's really sad.
Without everybody,
that's what I would be.
The fact that I go on to high
school, that wouldn't
matter to me.
"I can get my GED later,"
that's what I would say.
Soon, Omarina was achieving
near perfect grades
and attendance.
Her teachers encouraged her
to apply to competitive prep
schools beyond New York City.
- I thought that
was your best essay.
Read it to me again, I love it.
- "Typically, young adults
look upon a political figure
or someone in their life
for guidance and support.
I, on the other hand,
seem to find this inspiration within a
black and white street sign.
Imprinted on the sign
are the words 'One Way.'
It taunts me with the inevitable
reminder that coming in
is not the obstacle,
but making it out."
When the acceptance
letters began coming
in, they included a scholarship to
Brooks, an exclusive private
boarding school
in Massachusetts.
- So what did you decide?
Which school did you choose?
- After giving it a lot of
thought, I went with Brooks.
- So are you excited?
- Yeah.
- I know I am.
How does it feel, Ms. Miller?
- It's very humbling, um,
and I'm incredibly proud
of your accomplishments.
- Oh, Ms.
Miller, you're gonna make me cry!
Aw, come here.
We checked in on
Omarina halfway through
her sophomore year
at the Brooks School.
- I remember first getting here.
I was nervous that I was
way too different to fit in.
- We pray for our families.
- A lot of kids here are very
wealthy, and their parents are
very important people.
I go back to an apartment
in the middle of the Bronx.
- And we pray for our school,
that we may always be a home
for innocence and truth.
- There's times when you notice
subtle comments because people
haven't been exposed
to certain things.
I think they are genuinely
curious and genuinely want
to know how I do my hair in the
morning, or do I think
in Spanish, or, um...
I don't know, was I born here?
In this new environment,
the pressure on
Omarina wasn't just social.
In the beginning, she says,
she struggled to keep up in class.
- 1-1 equals 3.
Look at the last digit.
- I remember getting my first
quiz back and almost throwing up
because I had a 16%.
And I think that was the moment
when I realized, "Yeah, I'm not
getting by if I don't work
really, really, really hard."
During those times when, you
know, it feels like a little bit
too much, I feel like I do have
a strong faculty to support me.
And Ms. Miller,
who is always with me regardless
of where I am.
- Good morning.
- Good morning.
- What classes do you
have this morning?
- I have algebra two,
then I have a chem test.
- I felt as though it was
really imperative to keep very
constant contact.
- Okay, bye, Ms. Miller.
Love you!
- Just to make sure the
adjustment was going well, but
also knowing that many people
were rooting for her to be
successful here in the Bronx.
- So, what if I asked you
to graph this thing that's
changing over time?
- Well, zero is there,
so it would go away from it,
so it would be negative.
- I caught up and I got
good midterm grades.
I'm excited about
that, and I'm proud.
- My sophomore year,
now this is a good year.
You're kind of just floating.
I just need to keep looking
ahead and just keep going,
keep moving a step at a time.
But just as Omarina
was getting on track at Brooks,
she received a disturbing call.
- It was a Tuesday morning.
I couldn't ignore the feeling
that I had in my stomach.
- Why are we so powerless
to save the people we love?
She found out her
twin brother Omarlin
had been shot.
- I immediately
thought: is he dead?
Just tell me if he's dead.
- I want to tell
you why I did it.
The police said the
shooter fled the scene.
Omarlin survived.
- I was scared and sad and
disappointed and worried,
but I can't show that to him
because he doesn't need that.
He needs someone there
to be strong for him.
With their mother frequently
not at home, Omarina
was making regular trips to the
Bronx, juggling the demands of
her schoolwork and her sense of
responsibility to her brother.
- Hey!
Where were you?
I try very hard not to
ever cry in front of him.
I hope he does realize that I do
care, and that's why I do
the things I do and that's
why I always nag him.
So you get transferred,
or are you still in the process?
What's gonna happen with that?
- I don't know.
I'm just waiting.
- It's not gonna take
long, right?
- No, hope not.
Omarlin was reluctant
to talk about what was
going on in his life,
or about the bullet that could have ended
it.
- It came from this way into my
arms, and then
under my upper ribs
on the left side
close to my heart.
I don't know, I could have
died, so, I thank God
that I'm not dead.
And I could still be here.
So I just have fun.
I know she's going to
have a bright future, too.
Because she goes to school.
She got her scholarship.
That's good.
I don't know,
I have to have a good life
and a good job and
kids and be married.
That's it.
Omarina was finishing
her sophomore year
at Brooks, Omarlin, at age 16,
was still in the ninth grade.
At the time of filming,
he had only shown up for school five
times all year.
In the coming months,
he would be arrested for carrying
a knife,
and for possession of marijuana.
- I handle stress
in different ways.
When I get to Brooks,
I use it as almost my getaway.
I can't just think and think
and think and think about all
the things that are going wrong.
I just think of all the things
that might be going right,
you know?
We returned to Brooks two years
later, after a
difficult junior year that would
determine where, or even if,
she would go to college.
- What is oportet?
Remember from Latin 20,
you had that list of all
impersonal verbs?
- An indirect statement.
- Indirect statement.
- In the beginning,
I definitely thought I was gonna
have one of the best years.
But junior year ended up being
one of the hardest years of my
life.
I think the clouds started
gathering when we found out that
Omarlin was going
to be having a baby.
And I just remember thinking,
like, "What did you do?"
I just thought back to, like,
our childhood and how much our
parents, you know,
affected the trajectory of our lives.
And I just...
I just feared that he might not be able
to physically be there
because he's in a frenzy
to provide for her.
And my fears came true
when he was arrested.
Omarlin plead
guilty to attempted
robbery in the first degree
and was sent to Rikers
Island to await sentencing.
- I knew that my other half,
my brother, the person that I love
most in this world,
was going through something so terrible
that I could never even imagine.
- All right,
so what is the anti-derivative of 9?
- All of this anxiety,
you know, caused me
to lose focus in school.
- We're gonna get back to
finding the volume of the
cylinder,
but we're gonna do it through...
- Junior year's important because those are
the grades that are sent out to colleges.
I was, like, having panic
attacks just thinking about,
like, "Wow, my grades aren't
what they're supposed to be."
Getting up out of
bed was so difficult.
Just that day felt
like too much for me.
- I couldn't fathom the idea
that this amazing young lady who
had overcome so many things and
is on the precipice of moving on
to the next stage of her life,
and that might all be gone.
I knew that an intervention
was absolutely necessary,
so I drove up to Brooks.
- I just stopped, because I saw Ms.
Miller with her "I'm going
to kill you" eyes.
She'd always say, like, "All
right, there's all these things
you can't control,
but what are the things that are bothering
you right now that we can fix?"
She got me this poster for my
wall, more frames to put
pictures of, you know,
the people that I love.
Just that feeling that I had,
you know, people to catch me
whenever I did fall just gave
me the strength to keep moving
forward step by
step, step by step.
While all this was going
on, Omarina,
with the help of Ms.
Miller and the staff at Brooks,
was also applying to colleges.
- That last document that GW
needs, we need to take our
efforts to the next level in
terms of getting this thing
done.
The only way she could
afford to go was with a
generous financial aid package.
Her first choice was George
Washington University.
- I was scared because the
ending of my junior year
wasn't what I wanted it to
be in terms of academics.
- There was a possibility that
the grades were still gonna
overshadow her accomplishments,
which was so disheartening
to think about.
I wasn't sure what we were
gonna do if she didn't have
any financial aid.
The answer came when she
was home for December
break.
- Hi!
- Hey.
- How are you?
You look so pretty.
- Thank you, so do you.
She waited for the news
at her old middle school.
- I'm just a big bunch
of nerves right now.
Anything can happen, basically.
The email comes at 5:00?
At 6:00.
- Okay.
- I got an email yesterday
saying that they're gonna email
it to me at 6:00.
- Okay, y'all are taking
too long for this.
I need to know.
It's been nine minutes.
Oh, my God, I got in!
Oh, my God, yes!
And the money.
I don't know, I don't know,
I think they might send in
the money later.
I'll cry if I get full finan...
I'll cry real tears.
I don't cry, I try not to
cry, but I'll cry real tears.
- So, I just asked if we can
see a snapshot of the financial
aid letter.
Wait, wait, wait,
he just emailed me back.
- What did he say?
- "I can tell you that it is
an extremely generous package."
"And she should have no
issues making it work
next year and beyond."
Okay, now I feel better.
Now I feel better.
I feel better, I feel better.
- I'm gonna cry.
- It's okay!
It's okay.
Oh, thank God.
- Okay.
Oh, God, I don't ever cry,
but this is cry-worthy.
Oh, my God, thank you so much.
- Lives in poverty are fragile.
You could be doing great one
week one year and then something
else hits, and if you don't have
supports, you can still crumble.
Middle school intervention is
not sufficient in itself, but
it's essential that it starts
there, and we can see that
in these two kids'
life trajectories.
Although Omarina got some
special advantages, you don't
need the boarding school; you
need a decent high school.
Two to three adults will get you
all the way through high school
graduation and on a
path to post-secondary.
Her brother tragically
represents the other side
of the story.
If we don't solve the problem
or change the behavior that's
leading a sixth grader to miss
a month of school or fail math
and English,
it doesn't self-correct.
In fact,
we clearly see it gets worse.
Around the same time
that Omarina was accepted
to George Washington,
Omarlin was sentenced to three-
and-a-half years in prison.
- One of the people who were
testifying against him, in
their report, they said that
Omarlin had told them, like,
"I'm sorry that I'm doing this.
I'm doing this for my daughter."
He doesn't get to see a big
portion of her early years,
and his daughter's
growing up pretty fast.
It just really, really
messes with me, like,
knowing that I'm moving on
to a good part of my life.
You know,
I'm graduating high school.
I've always felt like he's
lagging behind me, and you know,
I don't know how to
get him on track.
But this is something different
in the sense that, um, this is
the rest of our lives.
This is no longer, you know,
school; this is his life.
No one in my immediate family
has graduated high school
and gotten into college.
However,
I believe I will be the first one.
And they will be excited
and thrilled, and they'll be
proud of what I've become.
- To be that full of profound
perspective and wisdom at this
stage in her life leaves me
believing that there are no
limits to what she might do
for, and share with, the world.
It is my privilege to present
the Trustees' Prize to Omarina
Cabrera.
Congratulations.
- Thank you.
- Congratulations to
the Class of 2016.