The Chronicle of Higher Education. June 23, 2014.
Corinthian Colleges Inc. has reached an agreement with the U.S. Department of Education that will allow the for-profit educator to avoid immediate closure as it proceeds with a plan to sell most of its campuses and “teach out” others, the company and thedepartment announced on Monday.
The company said last month that it was exploring “strategic alternatives,” and it disclosed last week that the Education Department had imposed financial restrictions that threatened its future. The department said the restrictions stemmed from Corinthian’s delays in responding to its requests for data.
The company said in a corporate filing on Monday with the U.S. Securities and Exchange Commission that the agreement would allow it to gain access to $16-million in student-aid money immediately.
Corinthian—which owns Everest College, Everest Institute, WyoTech, and Heald College, and which serves about 72,000 students on 107 campuses—said the agreement would allow it “to proceed with its plan to pursue strategic alternatives for its operations, including the sale and teach-out of schools in a manner that will best protect the interests of students, faculty, and staff, ensure the integrity of federal student-aid funds, and preserve the value of the schools.”
Under the agreement, Corinthian agreed to hire an independent monitor that would have access to the company’s financial and operating records and would oversee the company’s progress on the transition plan. Corinthian also agreed to provide the data that the department had requested. The company and the department are expected to make the terms of the transition plan final by July 1.