Quantcast
Get breaking news alerts via email

Click here to manage your alerts
Corinthian, federal education officials reach deal
Student aid » For-profit education company will get federal funding to stay open for now.
First Published Jun 23 2014 10:05 am • Last Updated Jun 23 2014 10:05 am

Santa Ana, Calif. • Corinthian Colleges Inc. and the U.S. Department of Education have reached an agreement that will allow the for-profit education company to receive an immediate $16 million in federal student aid funds and keep operating.

The announcement comes just days after Corinthian cautioned it may have to shut down because of its clash with U.S. regulators over student data and at a time when Corinthian is looking to sell off some of its schools.

Join the Discussion
Post a Comment

Corinthian — which owns the Everest College, Heald College and WyoTech schools — said last week that the Education Department had limited its access to federal funds after it failed to provide documents and other information. The Education Department said it heightened its oversight of the Santa Ana, Calif.-based company after requesting data "multiple times" over the past five months.

Corinthian said Monday the memorandum of understanding reached with the Education Department will allow its schools to maintain daily operations without interruption. It currently serves about 72,000 students.

Corinthian said it will enter an operating agreement with the Education Department that will allow it to continue with its plan to pursue strategic options for its operations, including the sale and "teach-out" of schools. In a "teach-out," no new students are enrolled but current students are able to complete their programs or transfer to another school.

Corinthian said it will continue to look for new owners for most of its campuses and hopes to have sales agreements in place within about six months.

The company plans to continue with the "teach-out" of schools that are underperforming or whose participation in Title IV student aid programs was ended by the Education Department.

Corinthian said the memorandum of understanding with the Education Department is a "positive step," but it still needs additional liquidity to fund its operations. The company also disclosed that the Education Department is considering denying recertification or removing certification of institutional Title IV eligibility for certain Corinthian schools. Corinthian said many of its schools have provisional Title IV program participation agreements with the Education Department, while other schools’ agreements have expired or are about to expire.

Corinthian said the Education Department could decline to renew expiring participation agreements or end existing agreements if it identifies "significant institutional failures." Corinthian said that if this happens, depending on the school, it could have a material adverse effect on the company.

Details of the memorandum of understanding are expected to be finalized in an operating agreement by July 1.


story continues below
story continues below

Corinthian’s stock rose 11 cents, or 31.8 percent, to 44 cents in morning trading.



Copyright 2014 The Salt Lake Tribune. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Top Reader Comments Read All Comments Post a Comment
Click here to read all comments   Click here to post a comment


About Reader Comments


Reader comments on sltrib.com are the opinions of the writer, not The Salt Lake Tribune. We will delete comments containing obscenities, personal attacks and inappropriate or offensive remarks. Flagrant or repeat violators will be banned. If you see an objectionable comment, please alert us by clicking the arrow on the upper right side of the comment and selecting "Flag comment as inappropriate". If you've recently registered with Disqus or aren't seeing your comments immediately, you may need to verify your email address. To do so, visit disqus.com/account.
See more about comments here.
Staying Connected
Videos
Jobs
Contests and Promotions
  • Search Obituaries
  • Place an Obituary

  • Search Cars
  • Search Homes
  • Search Jobs
  • Search Marketplace
  • Search Legal Notices

  • Other Services
  • Advertise With Us
  • Subscribe to the Newspaper
  • Access your e-Edition
  • Frequently Asked Questions
  • Contact a newsroom staff member
  • Access the Trib Archives
  • Privacy Policy
  • Missing your paper? Need to place your paper on vacation hold? For this and any other subscription related needs, click here or call 801.204.6100.