For-profit Corinthian Colleges shutters its last 28 campuses, ends classes for 16,000 students, Troubled for-profit higher education company Corinthian Colleges will close its remaining 28 campuses and end classes for about 16,000 students nationwide, company officials announced Sunday.
The college chain, which has drawn regulators’ sanctions, sold 56 of its Everest and WyoTech campuses and gradually shut down 12 others in a deal with nonprofit career training program Zenith Education Group, a subsidiary of nonprofit higher education finance company ECMC, Corinthian officials said in a statement.
But Corinthian’s shutdown, effective Monday, closed its last Everest and WyoTech campuses in California, Arizona and New York, and Heald College’s locations in California, Hawaii and Oregon, according to Corinthian.
The U.S. Department of Education slapped the company with a $30 million fine April 14 after uncovering “serious” misrepresentation of job placement success rates for students in the company’s Heald campuses, agency officials admitted in a statement.
The DOE reached an agreement last summer with the company that it would eventually cease operations. Corinthian didn’t adequately answer questions about its use of “false and misleading” job statistics in marketing materials and allegations that Corinthian exaggerated grade and attendance figures, Under Secretary of Education Ted Mitchell wrote in a blog post on the agency’s website.Mitchell pledged that the DOE would help the schools’ students.
“What these students have experienced is unacceptable and we look forward to working with Congress in an effort to improve accountability and transparency in the career college industry,” Mitchell said.
But company officials blamed state and federal officials for the school shutdowns, maintaining that regulators scuttled additional sell-offs by demanding burdensome fees and mandates for prospective buyers who would have kept the schools open.
“We believe that we have attempted to do everything within our power to provide a quality education and an opportunity for a better future for our students,” Corinthian CEO Jack Massimino said in a statement. “Unfortunately the current regulatory environment would not allow us to complete a transaction with several interested parties that would have allowed for a seamless transition for our students.”Some students at the closed schools may now be eligible to discharge their loans, while others who enrolled in the past four months will get guidance from the agency, officials at the Department of Education said.
Federal officials plan to work with state community colleges to provide opportunities for further education for the students at the shuttered Corinthian campuses, Mitchell said.
“We will do everything we can to ensure that Corinthian makes good on its obligations to students and taxpayers to the extent possible,” he said. “In addition, we encourage Corinthian students to pursue debt relief with their state, especially as many states have tuition recovery funds.”
The college chain, which has drawn regulators’ sanctions, sold 56 of its Everest and WyoTech campuses and gradually shut down 12 others in a deal with nonprofit career training program Zenith Education Group, a subsidiary of nonprofit higher education finance company ECMC, Corinthian officials said in a statement.
But Corinthian’s shutdown, effective Monday, closed its last Everest and WyoTech campuses in California, Arizona and New York, and Heald College’s locations in California, Hawaii and Oregon, according to Corinthian.
The U.S. Department of Education slapped the company with a $30 million fine April 14 after uncovering “serious” misrepresentation of job placement success rates for students in the company’s Heald campuses, agency officials admitted in a statement.
The DOE reached an agreement last summer with the company that it would eventually cease operations. Corinthian didn’t adequately answer questions about its use of “false and misleading” job statistics in marketing materials and allegations that Corinthian exaggerated grade and attendance figures, Under Secretary of Education Ted Mitchell wrote in a blog post on the agency’s website.Mitchell pledged that the DOE would help the schools’ students.
“What these students have experienced is unacceptable and we look forward to working with Congress in an effort to improve accountability and transparency in the career college industry,” Mitchell said.
But company officials blamed state and federal officials for the school shutdowns, maintaining that regulators scuttled additional sell-offs by demanding burdensome fees and mandates for prospective buyers who would have kept the schools open.
“We believe that we have attempted to do everything within our power to provide a quality education and an opportunity for a better future for our students,” Corinthian CEO Jack Massimino said in a statement. “Unfortunately the current regulatory environment would not allow us to complete a transaction with several interested parties that would have allowed for a seamless transition for our students.”Some students at the closed schools may now be eligible to discharge their loans, while others who enrolled in the past four months will get guidance from the agency, officials at the Department of Education said.
Federal officials plan to work with state community colleges to provide opportunities for further education for the students at the shuttered Corinthian campuses, Mitchell said.
“We will do everything we can to ensure that Corinthian makes good on its obligations to students and taxpayers to the extent possible,” he said. “In addition, we encourage Corinthian students to pursue debt relief with their state, especially as many states have tuition recovery funds.”
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