WASHINGTON (July 8, 2014) The for-profit education company Corinthian Colleges Inc. says the dozen campuses it is closing are in 11 different states and operate under the Everest name, including a campus in Fort Worth.
Corinthian and the Education Department reached an agreement late last week under which the company will shut down those campuses and put 85 more U.S.-based campuses up for sale.
The company says about 3,400 of the 72,000 students who attend schools owned by Corinthian will be affected by the closures.
The department put California-based Corinthian on heightened financial monitoring last month and set a 21-day waiting period for federal funds after Corinthian failed to provide adequate paperwork and comply with the department's requests to address concerns about the company's practices.
Those concerns included allegations of falsifying job placement data used in marketing claims to prospective students, and allegations of altered grades and attendance.
The sides earlier reached an initial agreement that allowed the company to obtain an immediate $16 million in federal student aid funds to keep operating, but a more detailed plan will be worked out.
Corinthian is the parent company of the Everest Institute, Everest College, WyoTech and Heald brands, which have 72,000 students nationwide who receive $1.4 billion in federal financial aid money annually, the Department of Education said.