Private college sued

Several students cite lack of accreditation in seeking damages

Sara Burnett, Rocky Mountain News

Published May 1, 2006 at midnight

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More than a dozen students are suing the for-profit Parks College in Thornton, saying they paid up to $36,000 each for a degree in surgical technology, only to learn that the school doesn't have the accreditation it needs for students to get jobs in the field.

The federal lawsuit accuses Parks - owned by one of the country's largest for-profit education companies - of false representation, negligence and violating the Colorado Consumer Protection Act.

A spokeswoman for Parks' parent company, Corinthian Colleges Inc., called the accusations in the lawsuit false and said the school's accreditation status shouldn't prevent students from finding work.

But the state's Division of Private Occupational Schools, which oversees schools like Parks, has said it is concerned about possible "false and deceptive" sales and recruiting practices, and told the college last year to stop enrolling students in the program.

It is investigating whether any other action should be taken, Director Jim Parker said.

The lawsuit against Parks comes at a time when the state is working to strengthen its enforcement of for-profit or trade schools.

Ripped by state auditors last year for shoddy oversight, the Division of Private Occupational Schools has a new director and is asking lawmakers to give its enforcement powers more teeth - including the ability to fine colleges for wrongdoing.

A bill to do that passed the Senate on Friday. It now goes back to the House for a vote on an amendment, which Rep. Val Vigil, the bill's sponsor, believes will easily pass.

It will then go to the governor, who is expected to sign it into law.

Fourteen former students say in their lawsuit that Parks officials told them the program had the accreditation it needed for them to sit for the Certified Surgical Technologist exam, a prerequisite for many jobs in the field. Parks also advertised its program that way on television, radio and on its Web site, the lawsuit states.

David Heredia, one of the students suing the school, said he never would have taken out some $30,000 in federal student loans to pay for the two-year program if he'd known Parks didn't have that accreditation.

The Northglenn resident is scheduled to begin repaying his loans - at $293 per month - this month. But he's still working part time at Sam's Club because he can't get work as a surgical tech.

"It's impossible right now," Heredia said. "It's been two years and I'm right back in the same spot. Or worse."

Like Heredia, 34-year-old Jim Sirhal started in Parks' surgical technology program in 2004 to try to make a better life for himself, his wife and his son.

A former copy machine repairman, he borrowed money from family members to help pay the bills while he was in school. He took out loans to cover most of his tuition.

Sirhal, who was in Parks' first surgical technology class, said he never explicitly asked Parks administrators if the program was accredited by the Commission on Accreditation of Allied Health Education Programs, or CAAHEP.

But he said students were told that when they finished, they would be qualified to sit for the Certified Surgical Technologist exam. A syllabus students said was given to them makes the same statement.

Only students who have finished a CAAHEP-accredited program may sit for the exam.

Parks does not have its CAAHEP accreditation, but it has applied for it and is "working hard" to receive it, Anna Marie Dunlap, senior vice president for investor relations and corporate communications, said in an e-mailed response to questions from the Rocky Mountain News.

Once the accreditation is received, students who already have graduated will be "grandfathered in" and eligible to take the exam, she said.

And while the school isn't accredited by CAAHEP, it is accredited by the Accrediting Council for Independent Colleges and Schools. That allows students to take the National Center for Competency Testing certification exam, which Dunlap described as a "basic requirement" for many employers.

Mixed response

Officials at some area hospitals said they will hire students who have passed that exam, but others - including University of Colorado Hospital and Exempla Lutheran Medical Center - said they hire only surgical techs who have completed programs accredited by CAAHEP and passed its exam.

The problem for Parks is that CAAHEP will not conduct a site visit - required for accreditation - until the first class of a new program is three-fourths of the way through its studies. It usually takes another six to nine months for accreditation to be granted.

Parks had its visit in July 2005, Dunlap said, and is still waiting to hear about accreditation.

Cindy Collinsworth, accreditation manager for the branch of CAAHEP that reviews surgical tech programs, acknowledged the process creates a risk for the first class because they likely will graduate before the program is accredited.

"That's why I always tell students, 'If you need a guarantee, you should choose an accredited program,' " Collinsworth said.

Dunlap said it is Parks' practice to explain to prospective and current students that the program is not currently accredited by CAAHEP.

Both Sirhal and Heredia said they never received such notice, however.

They say they learned the truth about Parks' accreditation midway through their program, from an instructor.

The lack of CAAHEP accreditation prevented students from being certified. It also caused trouble for the school in finding sites for the required three-month clinical experience.

So while the first class finished its courses in July 2005, most students still hadn't been placed in a clinical program by January. That is when the students hired attorney Marc Wuthrich.

Their lawsuit, originally filed in Adams County District Court, states that students did not get the education they paid for, that the school misrepresented its accreditation status, and that many students still were waiting for a clinical site.

"The plaintiff students lost income, extreme and valuable time of their lives, money and other emotional and stressful damages and losses," the lawsuit states.

In a letter recapping settlement talks, Wuthrich asked for $200,000 in damages per student, plus reimbursement for tuition, fees, books and other costs of attendance.

At Corinthian Colleges' request, the case was moved last month to federal court.

What's next?

Dunlap said Parks has worked "diligently" to find clinical sites for students. As of last week, she said, 55 students had completed the program. Of those, 12 had graduated and 10 are employed.

Of the remaining 43 students, 25 have been placed in clinicals, Dunlap said.

The remaining students either have not completed paperwork and tests needed to begin a clinical, or are part of the lawsuit and are no longer communicating with the school except through their attorney, she said.

The Division of Private Occupational Schools investigated the Parks case last year, after receiving a student complaint.

A state employee visited the school and met with students. When the students hired an attorney, the case was closed.

But after inquiries from the News, Parker asked the division's board to reopen the complaint.

"There's certainly some concerns here," said Parker, who took over in January. "We should be following this one through."

About Parks College, Thornton

• History: Founded by W.T. Parks in 1895 as Modern Business School. It was renamed Parks School of Business Administration in 1923. In 1996, it was acquired by Corinthian Colleges Inc., a for-profit education company based in California. Parks will change its name to Everest College next month.

• Enrollment: About 600 students

• Programs: Specializes in health, business and legal fields. In some programs, students earn either an associate's of science or an associate's of applied science degree.

• Cost: Varies by program. The surgical technology program, which takes about two years to complete, costs approximately $35,000. Financial aid, including federal grants and loans, is available.

• About Corinthian Colleges Inc.: One of the nation's largest for-profit education companies, Corinthian owns 133 schools in the United States and Canada, including Parks campuses in Thornton and Aurora and Blair College in Colorado Springs. In the fiscal year ending June 30, 2005, it reported revenues of $963.6 million.

Source: Corinthian Colleges Inc.

State oversight

The Division of Private Occupational Schools is the agency within Colorado's Department of Higher Education that oversees for-profit post-secondary schools, including trade schools.

323 Number of schools registered with the division

25-30 Number of new schools that open each year

20 Number that close each year*

335 Number of complaints filed against private occupational schools since 1999*

11 Number of complaints filed against Parks College, at either its Thornton or Aurora campus *

* Numbers are approximate. The division only recently began tracking cases in an agency database, so exact numbers are not available.

Source: Division of Private Occupational Schools

Buyer beware

Students considering post-secondary education should do their homework before they enroll. Here are some tips from the Colorado Commission on Higher Education:

• Contact the CCHE or the state's Division of Private Occupational Schools to find out if the school is authorized to operate here. You can access both agencies at www.state.co.us/cche_dir/hecche.html.

• Ask whether a school is accredited, and if so, by whom. Accreditation means an independent organization has evaluated the school and determined it meets certain standards. Legitimate accrediting organizations should be registered with the U.S. Department of Education or a state's department of higher education.

• Confirm accreditation with the accrediting body, and ask for a copy of the final report.

• Find out if the program you plan to enroll in requires its own accreditation. If so, ask the school if the program is accredited, and confirm it with the appropriate accrediting body.

• Visit the campus. Talk to administrators, faculty and students. Ask to talk to alumni who can tell you about their experiences.

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