Corinthian Colleges Inc., based in Santa Ana, California, has announced that it will sell the majority of its campuses (at least 85 will be sold and 12 closed) over the next six months, pursuant to an agreement reached between the for-profit college and the U.S. Department of Education.
Corinthian had been the recipient of approximately $1.4 billion each year in funding through federal student loans. The college is being sued or investigated by several state and federal government authorities for its marketing, which included falsified job placement rates and student attendance records, and its recruitment practices. As a result, Corinthian has had its access to federal student aid severely restricted, which accounts for almost 85% of its income. The shortage in cash has resulted in Corinthian winding down.
The agreement between Corinthian and the Department of Education provides that $35 million in student aid will be released under the condition that it can only be used for approved payments such as payroll expenses, student refunds and other education activities. Corinthian is prohibited from using the federal funds to pay for settling the lawsuits or investigations pending against it, or repaying its debt.
Corinthian Colleges operates in 25 states under the names of Wyotech, Heald College and Everest College. If you are impacted by the closure of your school, it is important to contact us to determine if you are eligible for a 100% discharge of your federal student loans. If your school closes while you are enrolled, if you were on an approved leave of absence, or if the closure is within 120 days after your separation from the school, you may qualify for discharge of your federal student loans.
Please keep in mind that every matter is different. If you have questions about your student loan debt and you would like to schedule a no-cost consultation to discuss your options, please contact our office by completing the form on this website or calling us at (954) 280-5066.