WASHINGTON (July 4, 2014) The troubled for-profit education company Corinthian Colleges Inc. and the U.S. Department of Education have reached an agreement that calls for the sale of 85 of the company's more than 100 campuses and the closure of 12 others.
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.
Everest has campuses in Austin, San Antonio, Houston, Fort Worth and Dallas, according to its website.