Corinthian Colleges Is Closing

Career College Central summary:

  • Late last month, Corinthian Colleges, a publicly traded for-profit higher education company that enrolls 72,000 students at over 100 campuses nationwide, announced its imminent bankruptcy.
  • Facing declining enrollment and multiple investigations into its financial and educational practices from parties including the federal Consumer Financial Protection Bureau and a group of state attorneys general, Corinthian was also under pressure from Department of Education regulators demanding information about practices that, the department said, included “falsifying job placement data used in marketing claims to prospective students and allegations of altered grades and attendance.” The department announced that it was temporarily withholding some of the federal student aid money that makes up the vast majority of Corinthian’s $1.6 billion in annual revenues. The company said the cash delay would render it effectively insolvent.
  • Last week, Corinthian and the Education Department agreed to negotiate a settlement that will amount to an orderly dissolution of the company.

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