Monday, June 23, 2014
Corinthian Colleges Inc. has been in a few state attorneys generals' crosshairs for consumer fraud, predatory practices, and subprime student loans, so today's announcement that the education company has reached a tentative agreement with the U.S. Department of Education to avoid shutdown is unsuprising. Corinthian Colleges ran afoul of the U.S. government when it failed to timely provide requested data "to address inconsistencies in the company’s job placement claims for graduates, as well as grade and attendance records" to regulators. Corinthian faced immediate shut-down of its 107 campuses after the government threatened to stop federal student aid to Corinthian's students. Under the proposed agreement, which will be finalized on July 1, Corinthian will phase out or sell its campuses. The ED has agreed to immediately release $16 million in federal student aid for students currently enrolled at Corinthian campuses, in exchange for Corinthian to provide enrollment documentation. Read more at ED.gov here.